01353 864949

EDDI - Eazipay's Direct Debit Interface. An online portal to access and manage your Direct Debit accounts. find out more

It's time to act, not talk as SMEs face £23.4 billion late payment debt burden

December 16, 2019

late 2019

The latest Late Payment’s research from Bacs makes sobering, if not shocking reading, according Eazipay Ltd, one of the UK’s leading automated payment processing companies.

Far from continuing the downward trend of recent years, the late payment burden shouldered by UK SMEs has rocketed – up from £13 billion in 2018, to £23.4 billion today. An increase of £10.4 billion in twelve months.

“Every political party claims to be a ‘friend’ of small businesses and yet government after government has failed to grasp the nettle and address the root cause of the issue of late payments. Just imagine what a boost £23.4 billion would do for the economy,” says Luisa Grey, a director at Eazipay Ltd.

Another shocking revelation is that the number of businesses experiencing late payments has mushroomed to a level not seen since 2015, and currently stands at 54 per cent.

The average late payment debt owed to SMEs now tops £25,000 per company, with £35,000 being the tipping point that many SMEs say would plunge them into bankruptcy.

“As if the late payment debt isn’t scandalous enough,” adds Luisa, “small businesses are spending around £4.4 billion a year chasing the recovery of money they are legitimately owed. That’s money out of their bank accounts they will not recover.”

“The one glimmer of hope that SMEs had was the appointment of a small business Tsar whose role it was to help SMEs recover monies they were owed. That post is now vacant, however, and may not be filled anytime soon. So, the late payments issue is now in complete freefall, with the amount owed rising for SMEs and no-one in their corner to fight for them.

“The UKs culture of one company routinely starving another of cash is indefensible. Viable, profitable companies are being driven into bankruptcy with all the attendant misery associated with employees losing their jobs. The level of debt is now so high that it is no longer a financial issue, it is a moral issue,” believes Luisa.

One viable option is for SMEs to insist on being paid by Direct Debit. That way, if the money is available, the amount will be collected, and the invoice will be settled in full.

“Direct Debits cannot be lost in the post,” concludes Luisa. “They cannot be incorrectly completed, and they cannot be post-dated. They are reliable and secure.

“And while it is undoubtedly true that SMEs themselves have a major role to play in minimising late payments, like timely invoicing, checking amounts, quoting purchase order numbers and using payment processes like Direct Debit, the overall debt level is now so high that serious government intervention is now essential.”

For further press information, please contact:

Damion Clark at Real PR (Consultants) LLP. Tel: 01353 667934 or 07789 911314 Email: damion@realpublicrelations.com

See what people are saying and how we are being rated in Google reviews:

★★★★★

James Simpson
SkinViva Ltd
Wonderful company. They offer a very efficient service with a quick turnaround time between Direct Debits being processed and the funds being transferred to your business...

★★★★★

Karen Steel
A very efficient service, always prompt to reply to emails and queries. Never have any problems with our Direct Debits. When I first started my role as Financial Controller I had never dealt with Direct Debits before and my predecessor had left me with no instructions...

★★★★★

William Bailey
We are an independently owned self storage facility and have worked with Eazipay for the past 5 years. Our account manager Jazzmine M is professional, proactive and deals with all of our requests in a efficient and timely manner. I would recommend Eazipay without hesitation.

★★★★★

Mark Allen
Eazipay have been a fantastic help to our business. Their rates are reasonable and they have always been efficient and proactive. We are in our fifth year of using Eazipay and would gladly recommend them to anyone. They have been invaluable to us.

★★★★★

Paddy Jeyaseelan
Local Guide
Eazipay have been my direct debit collection provider for more than 6 years and have helped my business grow and make the process of direct debit collections straightforward and manageable...

NOTE! This site uses cookies and similar technologies.

cookies : our website uses cookies and similar technologies to help make this website better : read more here or are you happy to accept ?

 

 

Cookie Policy

Our Cookies Policy explains what cookies are, how we use cookies, how third-parties we may partner with may use cookies on the Service, your choices regarding cookies and further

What are cookies

Cookies are small pieces of text sent by your web browser by a website you visit. A cookie file is stored in your web browser and allows the Service or a third-party to recognize you and make your next visit easier and the Service more useful to you.

How Eazipay Ltd uses cookies

When you use and access the Service, we may place a number of cookies files in your web browser.

We use cookies for the following purposes: to enable certain functions of the Service, to provide analytics, to store your preferences, to enable advertisements delivery, including behavioural advertising.

We use both session and persistent cookies on the Service and we use different types of cookies to run the Service:
- Essential cookies. We may use essential cookies to authenticate users and prevent fraudulent use of user accounts.

For the full disclosure section, including all types of cookies, please click here.

Third-party cookies

In addition to our own cookies, we may also use various third-parties cookies to report usage statistics of the Service, deliver advertisements on and through the Service, and so on.

What are your choices regarding cookies

If you'd like to delete cookies or instruct your web browser to delete or refuse cookies, please visit the help pages of your web browser.

Please note, however, that if you delete cookies or refuse to accept them, you might not be able to use all of the features we offer, you may not be able to store your preferences, and some of our pages might not display properly.

More information about cookies

If you would like more information regarding Cookies please visit the below site:
ICO (Information Commissioner’s Office) - https://ico.org.uk/for-the-public/online/cookies/