Paul Holland, Managing Director for UK/ANZ Fleet at Corpay, including UK brand, Allstar, shares data and insights from Allstar’s research drilling down into those factors that are taking a toll on the UK’s business owners.
UK businesses are no stranger to battling an onslaught of challenges, with inflation and economic uncertainty high on the culprit list.
Business owners have therefore become adept at spinning many plates, from increased workloads, to staffing issues and market fluctuations, yet recent research found that a third (35%) say chasing payments is the most frequent problem they encounter. This is an unnecessary drain on business owners time and energy, but to what extent, and what can be done to stem the tide?
What are the common pitfalls
Allstar’s research, which surveyed 500 SME business owners and decision makers, completed with Censuswide, found that taking phone calls and chasing payments are the top gripes for businesses. More than a third (35%) say chasing payments is their most frequent problem while 25% assign that status to the time they spend on the phone.
Time is money so each minute of the day counts, yet expense management tops the list as the biggest time sap; a third of businesses (37%) say that chasing unpaid invoices is the admin task that takes the most time. Coupled with the 26% that put expense management at the top of their list, money admin is dominating the day for SMEs.
With many reporting chasing unpaid invoices and admin taking up precious time, the research also found that SME owners are spending more than a full day every week on work related admin. A third (30%) spend more than half a working day every week on admin, while a fifth are taking a full day every week (7-10 hours).
It’s not just time that chasing payments and work-related admin is draining but other vital resources too, almost three quarters (70%) spend up to £1,000 on cash flow management and admin every week.
Practical ways to get on top of gripes
SME owners are on the lookout for little wins that make their lives easier by removing points of friction. What will work best for one company might not be the same for another, but there are tools and best practices that can help.
To minimise time spent on admin, consider the processes that are currently in place and if there are ways to streamline or automate them. For example, software packages can reduce the time spent on HR or managing appointments, while many businesses are turning to instant messaging services to whittle down the time spent on internal emails.
Every saving can contribute towards a healthier bottom line, so where possible liquidate slow moving inventory and free up cash tied up in stock, and avoid under- or overstocking. A softer approach is to maintain good relationships with suppliers to make negotiating longer payment terms easier, and discounts more likely to come your way.
Another option is to harness the latest tools and products that could give customers up to 44 days’ interest free credit on all business purchases*. Such solutions could help to make business payments and expenses easier to manage, as one relationship creates ‘less work’.
Winning back time and resources
It’s a tough climate for the UK’s SMEs; our insights show that one of the biggest issues that are impacting businesses is the time and resources spent on managing payments and keeping on top of admin.
In doing so, SMEs can re-focus their attention on those big-ticket items that require their expertise and attention and will ultimately mean the business can focus on its own success and that of the economy.
To learn more, visit: https://allstarcard.co.uk/
*Subject to status and a full credit check. To be eligible for Allstar Plus, your company must be incorporated (e.g. a limited company)