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Late invoices are the primary culprit for causing cash flow problems for businesses according to two-fifths ( 41 %) of UK small- and medium-sized enterprises ( SMEs ) while making sure the bills are paid was an issue for a third ( 32 %) and having access to emergency cash ( 21 %) was also top of the list . That ’ s according to Allstar , one of the UK ’ s leading business , EV and fuel expense payment companies , which launched its latest insights into the issues plaguing the nations small businesses .
Late payments are costing small businesses £ 22,000 a year on average , with the government announcing the New Fair Payment Code . This will include new measures and a consultation to combat the issue , which leads to 50,000 business closures a year .
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The research , which surveyed 500 SME business owners and decision-makers , completed with Censuswide , found that over half ( 54 %) cite cash flow an issue and up to 70 % say that the burden of cashflow and admin has significantly hampered business growth .
Cash flows are being impacted predominantly by inefficiencies , and just over half say they spend up to six hours managing costs and their cashflow . Burdened with a daily onslaught of challenges including cash flow management , SME owners are on the lookout for little wins that make their lives easier by removing points of friction and simplification . More than a quarter ( 28 %) said that faster payment of invoices is the key to helping their business save time , and 27 % say it would solve admin and cash flow problems .
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The EU ’ s General Product Safety Regulation ( GPSR ), which came into force on December 13 , will add extra obligations to all UK businesses selling nonfood goods into the EU and NI .
George Holmes , Managing Director of business finance specialist , Aurora Capital , reflects on what the regulations will mean for UK small businesses : “ The upcoming GPSR changes represent yet another regulatory hurdle for UK small businesses already grappling with rising costs and economic uncertainty .
“ While ensuring product safety is important , the extra paperwork and costs of compliance could overwhelm many SMEs , particularly those
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operating on tight margins or reliant on EU trade .
“ For small firms , adapting to these new requirements could mean investing in new systems and potentially even hiring new staff to handle compliance .”
He added : “ The government must act quickly to provide clearer , more accessible information on these changes .”
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