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The Analysis News & Opinions


Large rise in small firms taking legal action on late payment


Two in five small business owners (40%) say they are taking legal action against customers not paying them on time and many bosses are foregoing their own salary in order to ensure their employees get paid on time, according to new research from Hitachi Capital Business Finance One in five business owners (20%) are


even not paying themselves because unpaid invoices are affecting their cashflow. This number doubles for smaller ventures with less than 10 employees (40%). At a time when the lender has found three in


five small firms are affected by late payments (62%), this data highlights the human impact on business owners – and these issues have seen a marked increase since 2018. For example, there has been a 22% rise in


the number of small businesses wasting time and money on legal action to chase a late payment (rising from 31% to 40% since 2018), and a 14% increase in SMEs being


unable to pay suppliers because of late client payments (up from 31% to 36%). The cashflow challenges that result from


chasing late payment have forced more than one in three small firms (35%) to seek short- term borrowing to make ends meet. Gavin Wraith-Carter, managing director


at Hitachi Capital Business Finance, said: “It is disheartening that so many small business owners feel impeded because their customers are not paying on time and, for many, that wreaks havoc with their cashflow. The fact small-business owners are sacrificing their salary also means they literally take their business worries home with them.” Further findings from the research found:


l Almost two in five business owners (38%) said that late payment placed a huge risk on their supply chain, while 31% further stated that because of this, their crucial relationships with suppliers, clients and customers was greatly affected.


lSole traders were the most concerned with incurring bank charges as a result of short-term borrowing, with 44% seeing it as a concern. l The oldest firms (those trading for over 35 years) were the most worried about having to take on short-term loans to make ends meet (40%). The highest likelihood of pursuing legal action was as a result of late payments (62%). l Half of all SMEs working in medical and health services (50%) said late payment was harming their relationships with clients and suppliers – 12% higher than the national average. This comes as BUPA has been in the spotlight for paying its clients late.


Mental-health awareness day held


More than 60 clients and partners have been welcomed to Qualco UK’s World Mental Health Awareness Day in partnership with Harlequins at The Stoop last month. The event took place on World Mental Health Day, and offered guests a variety of informal sessions to enhance mental wellness. The day began with a mental-health quiz,


highlighting issues that impact it on a daily basis, encouraging guests to speak out and be comfortable with the subject matter. Hard-hitting facts were revealed by


Qualco UK’s head of sales, Jan-Michael Lacey; that one in four people in the UK each year suffer from a mental-health problem and 90% of people with a mental-health problem experience stigma and discrimination. Former Royal Marines commander and


now head of business academy at Harlequins, Roderic Yapp, enthralled attendees with his mental-health resilience session. He explained how his experience in Afghanistan, Libya,


8


McCormack, Renaldo Bothma, Gill Bourke, and Alex Dombrandt. The players revealed how they keep their own mental wellbeing in check, both on and off the pitch. The group divided into six teams to take


and Somalia still plays a vital role in his own mental wellbeing. High-pressure situations and quick decision


making put Mr Yapp at the top of the pile when it comes to understanding not only his own state of mind, but that of others, as he took attendees on a journey through the evolution of human psychology. Guests enjoyed a Q&A with members of the


men’s and women’s Harlequins teams, such as Brett Heron, Santiago Botta, Deborah


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part in a tag ‘rugby world cup’ tournament on the hallowed turf at The Stoop. Members of the Harlequins team led the warm-up and coached the players. Teams included Japan, Ireland, Argentina, Namibia, England and Scotland, with Japan coming out on top by beating Namibia in the final. Christian Jacob, managing director of


Qualco UK, said: “Thank you to everyone who attended our Mental Health Awareness Day, and to the team at Harlequins who gave our clients and partners such an insightful day of sessions on a topic that is often hard to talk about. We were delighted to offer the chance for our guests to bolster their mental, emotional, and physical resilience at the home stadium of the Harlequins.”


November 2019


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