1 in 10 invoices paid late, impacting Small & Medium businesses to the tune of $3 trillion globally

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New Sage report found that In the United States:
Friday, December 8th, 2017

ATLANTA, Dec. 07, 2017 (GLOBE NEWSWIRE/KOREA IT TIMES) -- An economic report published today by Sage reveals the detrimental impacts of late payments on Small & Medium Businesses, currently equating to $3 trillion globally. With 1 in 10 invoices failing to be paid on time, the study reports up to 10% of payments are either never paid or paid so late that businesses are forced to write them off as bad debt. Undertaken by Plum Consulting, the research analysed responses from over 3,000 business builders to look at the effects of late payments on Small & Medium businesses. It highlights significant implications for our entrepreneurs and their ability to operate, plan and grow.

‘The Domino Effect: The Impact of Late Payments’ highlights that almost 40% of Small & Medium Businesses experience direct negative impacts from late payments. As a consequence of late payments, 16% in the US say they will struggle to pay bonuses around the festive period, and nearly 25% expect an impact on staff pay.

Other common impacts in the US include delaying investment into the company (nearly 25%) and over 18% said it impedes the ability to pay its own suppliers, which in turn, creates a vicious cycle.

However, when looking at the reasons why Small & Medium businesses don’t chase payments, the overwhelming response of those surveyed is to protect client relationships, indicating that there is a stigma around chasing payments. Over 30% noted that they weren’t “chasing” the payment because they felt it would negatively impact client relationships, and over 40% explained that they had no real reason for not chasing the late payment. Similarly, over 30% of those making late payments couldn’t pinpoint a reason for why that payment was late.

“Late payments create unnecessary financial stress, especially for Small & Medium Businesses that depend on these funds to maintain day-to-day operations, pay staff and suppliers, and support future growth,” said Nancy Harris, Executive Vice President and Managing Director of Sage North America. “Our survey reveals that 13% of invoice payments to these organizations in the United States are paid late, and a proportion of those invoices - 10% - are written off as bad debt. With most respondents citing not wanting to chase payments to protect the client relationship coupled with a high percentage of those actually making the payments not able to explain why the payment was late in the first place, is a clear indicator of the proactive role businesses must take to ensure invoices are paid on time. It is clear the stigma around late payments and keeping a healthy client relationship needs to change, so small businesses can get on with doing what they love – running their business – rather than worrying about when the money will come in.”

The SME sector accounts for a sizeable portion of the US economy. Small & Medium Businesses employ 48% of the country's workforce, and they contribute 53% of total gross value add (GVA) per year. GVA measures the contribution to an economy of an individual producer, industry, sector or region. A significant proportion of companies with which SMEs have commercial relationship make their payments late in the US. In total, 11% of all payments to SMEs are made late; these payments represent 13% of total invoices.

Furthermore, 10% of invoices are written off as bad debt. Medium-sized companies in the US see the highest proportion of invoices for which payment is overdue become bad debt, with micro firms seeing the lowest proportion of such invoices. More than a third of SMEs currently experience or expect to experience all types of impact regarding late payments, with over 30% expecting impacts in staff pay (both periodic and discretionary). 

Global snapshot: Late Payments Landscape – The Domino Effect

Across the 11 countries analysed, Small & Medium Businesses account for at least 96% of total enterprise. ‘Protecting client relationships’ is the most cited reason for not chasing late payments – leading Sage to call for a fundamental shift in culture for Small and Medium businesses to be proud to chase for work undertaken.

Country Proportion of invoices that are paid late (%) Average number of days per year spent by SMEs chasing up late payments Top barrier to chase late payments for SMEs in each country Proportion of invoices that become bad debt (%)
UK 18 15 Protect client relationship (40%) 9
South Africa 15 20 Protect client relationship (40%) 9
France 11 6 Protect client relationship (21%) 8
Ireland 15 7 Protect client relationship (43%) 8
Australia 9 5 Protect client relationship (29%) 7
Brazil 7 14 Protect client relationship (35%) 7
Canada 10 7 Protect client relationship (31%) 8
Singapore 18 15 Protect client relationship (41%) 9
Spain 12 18 Protect client relationship (37%) 8
United States 13 15 Protect client relationship (32%) 10
Germany 9 5 Protect client relationship (31%) 8

Methodology

This research was conducted by FTI Consulting’s Strategy Consulting & Research team from July 4 – July 21, 2017 and included respondents across 11 countries who are either fully involved in or knowledgeable of the decision making in their organisation.

About Sage
Sage (FTSE:SGE) is the global market leader for technology that helps businesses of all sizes manage everything from money to people – whether they’re a start-up, scale-up or enterprise. We do this through Sage Business Cloud - the one and only business management solution that customers will ever need, comprising Accounting, Financials, Enterprise Management, People & Payroll and Payments & Banking.  

Our mission is to free business builders from the burden of admin, so they can spend more time doing what they love – and we do that every day for three million customers across 23 countries, through our 13000 colleagues and a network of accountants and partners. We are committed to doing business the right way, and giving back to our communities through Sage Foundation.

Find out more at www.sage.com/en-us.

Media contact:
Lisa Williams
PR Manager
Lisa.Williams@sage.com

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Dovre Group Plc: SHARE REPURCHASE 7.12.2017

 
‎2017‎년 ‎12‎월 ‎8‎일 ‎오늘, ‏‎5시간 전전체 문서로 이동

 

Dovre Group Plc ANNOUNCEMENT  7.12.2017
     
     
Dovre Group Plc: SHARE REPURCHASE 7.12.2017  
     
In the Helsinki Stock Exchange    
     
Trade date           7.12.2017  
Bourse trade         Buy  
Share                  DOV1V  
Amount             15 000 Shares
Average price/ share    0,2513 EUR
Total cost            3 769,50 EUR
     
     
Dovre Group Plc  now holds a total of 20 999 shares  
including the shares repurchased on 7.12.2017  
     
     
On behalf of Dovre Group Plc    
     
Nordea Bank AB (publ), Finnish Branch    
     
Janne Sarvikivi           Ilari Isomäki  
     
For more information, please contact:    
     
Dovre Group Plc    
Patrick von Essen, CEO of Dovre Group Plc  
Tel. 020 436 2000    
patrick.essen@dovregroup.com    
     
www.dovregroup.com    
     
     

 

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