June 15 2015
The United Kingdom's micro-businesses are collectively owed £16.9 billion in outstanding invoices, according to research published by Intuit.
Micro-businesses those with up to ten staff represent 96% of all firms in the UK and slow payment culture is restricting growth in what may be the UKs most important, but also most vulnerable businesses. Micro-businesses are engines of growth for the country, but time spent chasing overdue debts and additional borrowing may be harming their ability to develop and grow.
In the study, 32% of respondents said that they have had to take on loans or credit to pay suppliers and wages, putting financial strain on the business. In addition, these businesses say that they spend an average of 19 days per year trying to collect debts from their customers, time which they would prefer to spend on more constructive activities to grow the business.
The research also found that only 36% of micro-businesses issue e-invoices via email with many still issuing traditional paper invoices and some waiting up until a month after completion of work to do so.
Samantha White, CEO of My Credit Controllers said:
"People don't think twice about outsourcing specialist activities like payroll and book keeping. Now credit control is available as an outsourced service. No business is too small to benefit from our online debt collection or outsourced credit control services."
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