Slow payers the bane of SME’s… you need a little Woosabi.
RESEARCH from Barclays shows that nearly half (48%) of SMEs in Wales experience problems with late payment.
The research also reveals one in five admitted the impact of customers or suppliers failing to pay on time threatened the day to day survival of their business. Nearly half (48%) of those surveyed felt they wasted valuable resources chasing debts, while four in ten of Welsh bosses are currently using their own money to keep their business afloat while they wait on outstanding payments.
Allan Griffiths, Barclays local business regional director said, “A regular and reliable cashflow is essential to the smooth day-to-day running of a business - particularly a smaller one - and the majority of SMEs cannot afford to wait on money they are owed without feeling the impact on their bottom line.
Chasing up late payments is a massive drain on small organisations, which can be particularly damaging in a challenging economic environment.”
On average, at any given point during the year, SMEs are owed more than £1,000 from suppliers or customers who have failed to pay during the standard 30 day invoicing period. Welsh entrepreneurs typically have to wait around 10 days after the invoice due date before they get paid.
As a result, approximately 42,000 SMEs in Wales have an employee dedicated to chasing overdue payments equating to yet more costs. In those organisations that don’t have someone specifically responsible for the job, owner managers typically have to pursue outstanding payments personally; distracting them from the day to day running of their business.
Mr Griffiths said, “Owners of small businesses are no strangers to multi-tasking and already spend vast amounts of time juggling a wide range of responsibilities. Chasing late payments is an extra burden which they can well do without. Winning new business, driving sales, and fulfilling customer demands are ultimately what should make or break an organisation - clearly a manager’s time is better spent on these tasks, rather than making endless phone calls to late payers.”
Sourced from: clwb
Tags: management, multi-tasking, New Business, organisation, pay, small biz, Small Business, SME
April 13th, 2008 at 5:43 am
Having run inPractice, an SME, for the past 4 years I can state categorically that slow payers are a big pain.
But not with Woosabi! I’ve been using it now for 2 months and now I literally forget about it. I login, Woosabi tells me who owes what and for how long, and if it’s really long it gives me a little prompt to call them and sort it out.
The days of trying to remember who owes you are over!
Welcome to Woosabi.
April 13th, 2008 at 10:52 am
Great article that rings very true to me.
Slow payers…more than a pain…as directors of a Project Management Co (APM Ltd) me + “ahh kid” (Kairdiff for - my brother) completed Insurance work on a listed building near Bridgend (Ewenny Priory) to an exceptional standard and spent out many £000s!!
Yet despite excellently completed work, on time + on budget, and the Insurance Company immediately paying out to its acting agent (a so called reputable S Wales Property Agent) it still took over 15 weeks to get our money. In the meantime, the bank would not extend our already stretched overdraft or allow us to borrow any more money;as the bank had our homes as security, it was very worrying. We had to manage the cashflow as best we could - result: workers laid off, suppliers unpaid (our credit rating plummeted), stress in work + at home.
It’s hard to believe, but we only received our money when I threatened to “protest picket” the Bridgend Offices of the Property Agent with banners exclaiming that they were thieves + fraudsters. Amazingly we received a cheque within 48 hours!!