Late Payments Plague Freelancers and SMBs Amid Economic Turmoil
- UK small business sector struggling with late payment issues
- Liverpool worst affected by late payments
- 66% of invoices sent in past 18 months paid late in Liverpool
- Eastern Central London and Sheffield also badly hit
- Ipswich least affected with only 7% late payments
- Total invoices paid to small businesses down by 33% during lockdown period
- Late payment issue worsened during April-June 2020
- 51% of invoices paid on time in Q2 2020
- FreeAgent calls for addressing late payments as a priority alongside Covid-19 support
- CEO Ed Molyneux highlights severity of the problem
New research by cloud accounting software company FreeAgent reveals that the UK’s small business sector is facing a significant issue with late payments, affecting over half of invoices sent between January 2019 and June 2020. Liverpool tops the list of worst-hit areas, with 66% of invoices paid late, followed by Sheffield (63%) and Eastern Central London (62%). Ipswich is least affected at 7%. The pandemic has exacerbated the problem, with a 33% drop in total invoices paid to small businesses during Q2 2020 lockdown and only 51% of invoices paid on time. FreeAgent CEO Ed Molyneux urges addressing late payments as a priority alongside Covid-19 support.
Factuality Level: 8
Factuality Justification: The article provides relevant information about the problem of late payment in the UK’s small business sector based on research by FreeAgent. It includes specific data and statistics from their analysis of over two million invoices sent between January 2019 and June 2020. The article also quotes Ed Molyneux, CEO and co-founder of FreeAgent, who provides insightful commentary on the issue. However, it could be improved by providing more context about the impact of late payments on small businesses and freelancers, as well as potential solutions or actions that can be taken to address this problem.
Noise Level: 3
Noise Justification: The article provides relevant information about the problem of late payment for UK freelancers and small business owners based on research by FreeAgent. It highlights specific areas affected more than others and mentions the impact of the pandemic on this issue. However, it could benefit from more in-depth analysis or discussion of potential solutions to address the problem.
Financial Relevance: Yes
Financial Markets Impacted: Small businesses and freelancers
Financial Rating Justification: The article discusses the issue of late payments affecting small businesses and freelancers, which can impact their cash flow and financial stability. This has implications for the overall financial health of these entities and may affect their ability to operate and contribute to the economy.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, and the issue of late payments to small businesses is considered a widespread problem but not an extreme event.
www.retailsector.co.uk