As we all know though, on a day to day basis revenue is not about financial reward for the individuals behind a business. No, it’s about meeting overheads, reinvesting in the business and generally keeping the ship on an even keel.
This is why cash flow is such a major issue and operational concern for any commercial organisation, but especially for SMEs, and also why the well-publicised late payments crisis that the UK finds itself in is so damaging for business.
Research from our partners at Sage has revealed some startling figures that lay out the situation in stark relief:
- 17% of payments to UK SMEs are paid late
- On average now there is £14bn withheld from SMEs by businesses not paying on time
- Around 5p in £1 of UK revenues has to be written off due to poor payment practice
- The average UK SME spends 15 days a year chasing late payments
It’s statistics such as these, along with their depth of knowledge of the UK SME market, that has seen Sage pick up the baton for businesses in recent high-profile campaigns on the issue and highlight the extreme difficulties businesses can put each other in by not paying promptly.
While it’s certainly the case that some late payments are unavoidable due to the behaviour of the parties concerned, it’s also important to recognise the role technology can play in positively impacting average payment times.
This opportunity for businesses is something that has been focused on in the next upcoming release of Sage’s 200cloud solution and its 2019 Winter Enhancements. This latest version introduces the full roll-out of the system’s integration to leading Direct Debit platform GoCardless and builds on existing functionalities to make the electronic payment features available to Sage 200 users more extensive than ever.
Payment options that can now be offered to your customers and accessed direct from your invoices include:
- GoCardless, to collect payments using Direct Debit
- Stripe, to receive debit and credit card payments
- PayPal, to receive (you guessed it) PayPal payments
With all of these payment integrations, once the payment is received Sage 200cloud will automatically download transactions and post to your system, further increasing the efficiency of the process for your business.
At DCS we love seeing the business solutions we work with being used to overcome business challenges and this is a prime example.
Technology, a structured approach and a few little tricks of the trade can go a long way when it comes to getting paid on time. Discover more by completing the form below and downloading the free Sage eBook produced in partnership with GoCardless, A Guide to Getting Paid on Time: