Bank payment company, GoCardless, has teamed up with the Federation of Small Business (FSB) to offer its members practical tips and advice to address late payments.

FSB campaigns for measures to curb poor payment practices by large companies to small businesses.

Over half of UK small businesses impacted by late payments

Research released last year by FSB revealed that over half of the 5.5 million small businesses operating in the UK suffered from late payments in 2022. A quarter report an increase in late payments. The study revealed wide-ranging business impacts, with 37% of small businesses saying they took on credit to manage their cash flow. It also highlighted how the uncertainty and stress of securing financing can negatively impact well-being and quality of life.

Nicola Hamilton, VP Marketing, Brand & Communications at GoCardless said: “Small business owners are waiting too long to get paid. The cost of receiving what they’re owed is simply too high. Hours spent chasing payments quickly add up. Small business owners often opt to let a late payment go rather than having that awkward conversation with a customer. This needs to change.

“We’re excited to work closely with FSB to put small business owners back in the driving seat when it comes to collecting their hard-earned money.”

Caroline Lavelle, Chief Commercial Officer at FSB, added: “Small businesses are the backbone of our economy. But for too long their growth has been stunted by the scourge of late payments. Late payments can affect mental wellbeing alongside the financial strain. While there are wider issues at play, which FSB is campaigning on to address, there are practical steps that many small businesses can take right now to reduce the burden on their bottom line. I hope this new online hub will be a welcome resource to help our members with their financial wellbeing.

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FSB GoCardless Late Payments Hub

The FSB GoCardless Late Payments Hub contains practical information and advice including:

  • How to minimise payment admin and improve cash flow
  • How the payment experience can impact customer satisfaction
  • How to evaluate different payment methods
  • How the right payment strategy can help to foster growth

GoCardless makes it easier for businesses to take control of their payments by collecting one-off and recurring payments via Direct Debit and open banking. Founded in 2011, the global fintech now processes more than $35bn of payments each year.