Our comments on late payments on The Guardian Website
We were recently asked to contribute to an article for The Guardian website within the Small Business section regarding how we tackle late payments from customers and how cloud technology helps us to streamline what is a large source of trouble for many small businesses such as ours.
“According to research from WorldPay UK sole traders and mobile micro businesses could be owed up to £2.5bn by late paying customers each year. What’s worse, nearly all of this debt – £2.4bn – ends up getting written off. The survey of more than 1,000 mobile tradespeople and micro businesses in the UK reveals that 75% of respondents have had a late payment in the last 12 months. Among those who have been paid late in the last 12 months, 45% have experienced cash-flow problems.
According to Gareth Waters of Welsh creative and web design agency Brand Nu Creative, the key to avoiding late payments is giving customers options. “I always give customers 30 days terms, but I try to factor in as many options as possible, so they can pay through mobile banking, bank transfer or PayPal,” he says. For the last 18 months he has also used the Barclays app Pingit. “Pingit is just one of the options I give them,” he says. “It is so easy to use. You link your account to your mobile phone number and the client can pay you through that.”
To view the full article on The Guardian website, click here.