Late payments research reveals cost to mental health
January 20, 2020
Late payments are hitting the mental health of small business owners, according to new research published by Pay.UK, which runs the Bacs Direct Credit and Direct Debit payment services.
More than a quarter (26 per cent) of SME business owners stress about late payments even when they are not at work. Seventeen per cent say that payment delays undermine their own confidence in their ability to run a business and 16 per cent worry about the issue every working day.
Two thirds (66 per cent) report that late payments make running a business less enjoyable while almost one in ten (nine per cent) of business owners have considered accessing professional support to help with their anxieties over being paid late.
Pay.UK's late payments research also shows that more SMEs report being paid late (54 per cent) than at any time since 2015 (55 per cent), with a total late payments bill of £23 billion this year – up from £13 billion in 2018.
Late payment consequences which undermine the emotional wellbeing of SME owners include: paying their own suppliers late (24 per cent), relying on overdrafts (35 per cent), cutting their own salaries to keep cash in their business (24 per cent), difficulties paying their own staff on time (12 per cent) and struggling to pay business bills (13 per cent).
Comments made during the research by small business owners regarding the emotional impact that delayed payments include:
- “It’s hindering my relationship with my husband who is my business partner as there is more talk about work rather than other things…”
- “…it’s never out of your head, it’s always at the back of your mind. You’ve got bills to pay and you can’t because money isn’t coming in quick enough…”
- “I’m not as happy in myself as I would be if there weren’t any problems with late payments. Quite cautious of what I spend myself. I tend not to have holidays for that reason…”
For further press information, please contact:
Damion Clark at Real PR (Consultants) LLP. Tel: 01353 667934 or 07789 911314 Email: email@example.com