Thatcham, UK, 07.07.2023 – Legateca, the premier platform for professional legal service providers, highlights the critical problem of late payments, revealing new findings that indicate one-third of payments to small businesses across the UK are not made on time. The average value of each delayed payment stands at £6,142, causing significant cash flow challenges for small enterprises that heavily rely on smooth cash flow. This growing issue has led to a staggering 20% of small businesses encountering major cash flow problems, hindering their growth and sustainability.
Late payments have become a pervasive obstacle for small businesses across various industries, severely impacting their ability to manage finances effectively. With an estimated 5.9 million small businesses in the United Kingdom alone, the consequences of this issue are far-reaching. In light of this, Legateca’s analysis indicates that if small businesses were paid promptly, the economy could experience an annual boost of approximately £2.5 billion, leading to increased productivity and overall economic growth.
Umair Zahid, CEO of Legateca, expressed deep concern about the significant impact of late payments on small businesses, stating, “Small businesses are the backbone of our economy, making substantial contributions to job creation and innovation. However, the prevalence of late payments impedes their ability to thrive and fulfil their potential. It is crucial for both businesses and policymakers to promptly address this issue and implement effective measures to ensure timely payments.”
To combat this pressing issue, Legateca urges small business owners to take brave steps and pursue necessary legal action to encourage timely settlements. Umair further emphasizes, “We often witness small businesses being the victims in the relentless pursuit of overdue payments. They are often constrained by limited time and resources and may lack confidence, particularly when dealing with larger organizations. This situation should not persist. If business owners have fulfilled their obligations and have not been paid, they absolutely have the right to claim their money.”
As the issue of late payments to small businesses continues to persist, Legateca remains steadfast in raising awareness, offering viable solutions, and collaborating with businesses and policymakers to drive positive change. Umair concludes, “By addressing this pressing concern, we can create a more resilient and thriving small business sector, ensuring a stronger economy for all.”
Zakia, an SRA-regulated freelance solicitor with extensive experience in Commercial Litigation and Business Debt Recovery, emphasizes the importance of a robust and proactive debt recovery process for small businesses facing late payments. Zakia states, “It is crucial for small businesses to establish a clear and efficient debt recovery process for late payments, which includes taking legal action where necessary and in a timely manner. I have spoken to numerous small business owners who admit they are unsure of how to recover payment for overdue invoices. Often overlooked, the absence of a clear process can significantly impact cash flow, thereby jeopardizing the business’s overall stability.”
As Legateca continues to champion the cause against late payments, the company remains committed to raising awareness, offering practical solutions, and working collaboratively with businesses and policymakers to drive positive change. By addressing this pressing concern, a resilient and thriving small business sector can be fostered, resulting in a stronger economy for all.
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About Legateca: Legateca is a leading platform for professional legal service providers, offering a comprehensive range of legal solutions to individuals and businesses alike. With a dedicated focus on excellence, Legateca is committed to delivering outstanding results and exceptional client experiences. Through its innovative platform, Legateca enables seamless access to a wide network of legal experts, empowering clients to find the right solutions to their legal needs efficiently and effectively. Learn more at www.legateca.com.