UK Small Business Owners Waste 10% of Their Day Chasing Payments
Small firms in London, Wales and Scotland are the most likely to be affected by late payments and overdue invoices
UK small business owners typically waste 10% of their working day chasing late payments and overdue invoices, according to new research by Xero.
The survey of 1,003 small enterprises and sole traders revealed that 52% of business owners worry about unpaid invoices with London (14%), Wales (12%) and Scotland (11.5%) the regions where firms suffer the most.
London-based businesses can spend up to 1.5 days chasing payments while Welsh firms spend 1.3 days on average.
When divided by industry, businesses in the HR sector (3 days) are most affected by late payments followed by IT and telecoms (1.8 days), and manufacturing and utilities (1.7 days).
When asked what was the main reason for waiting on invoices, business owners cited customers waiting for payments themselves (32%) as the top factor, followed by a lack of consistency on payment terms (27%).