As most people might have predicted, the ongoing situation with COVID-19 is having a huge impact on businesses of all sizes.
It has to be said though, that SMEs in particular, especially new ones, are finding it difficult to survive right now, never mind to see any light at the end of the tunnel.
At #TeamCES, we are big advocates of looking after the supply chain, from the little guy through to the major players, but reports this week suggest that the current climate is having a knock on effect that will make it virtually impossible for some companies to survive.
Sidetrade, which is a new tracker by AI platform provider, indicates that the number of unpaid UK business invoices rose by 23%.
This data is pretty accurate, as it weighs up the statistics of over 26 million invoices and around 3.7 million businesses nationwide.
This information is bleak, and behind the figures are hundreds of thousands of personal stories. Independent shops struggling to pay utilities with zero income. Tradesmen who have built their businesses from the ground up.
So many other examples as well.
All facing tough times, and in many cases, eventual closure.
Some estimates rate that as many as one fifth of UK SMEs will collapse due to a lack of cash because of COVID-19.
The predictions are scary, but they’re not unrealistic.
Invoices were big news in June 2019, back before the world changed, as the Small Business Commissioner set aside funds to help businesses get their invoices paid more efficiently and effectively.
Hopefully that will help for some, although phone lines are likely to be busy and virtual queues longer than the one outside ASDA.
For big businesses, there is a responsibility to pay invoices as quickly as possible.
For everyone, there is a responsibility to pay invoices as quickly as possible.
Our advice hasn’t changed.
Pay your invoices. Look after the links in the chain.
We’re all in this together.
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