Even if it doesn't feel like it's an issue for you - here are the real reasons why it's such a significant issue for all of us.
75% of the self-employed say late payments have caused them concern, with 45% saying it creates significant stress or worry and 65% say that having to chase those late payments causes additional stress (Leapers, 2020).
Chasing late payments takes up an average of 20 days a year for freelancers (IPSE, 2019). 26% of SME business owners stress about late payments even when they are not at work (Pay UK 2019) with 21% of freelancers spending time while on holiday chasing late payment (IPSE 2019).
17% say that payment delays undermine their own confidence in their ability to run a business and 16 per cent worry about the issue every working day. 66% report that late payments make running a business less enjoyable with one in ten business owners considering professional support to help with their anxieties over being paid late. (Pay UK)
People experiencing financial difficulties are more likely to feel anxious, depressed and stressed, while those with an existing mental health problem find themselves more likely to get into debt. Of those who are currently in some form of debt, 38% have felt anxious and 34% have suffered from stress, depression or mood swings as a result. (Money Advice Service, 2017)
And... 50,000 SMEs go out of business every year as a result of late payments, at a cost of £2.5bn to the economy. (FSB)
This is as much of a mental health issue as a commercial one.
Dealing with late payments is an inescapable part of running a business and will have a negative impact on your emotional health if not managed well.
