Late payments are the primary culprit for causing cash flow problems say 41% of businesses, Allstar research finds
Findings also reveal UK SMEs are spending up to six hours every week managing costs and their cash flow
Late payments cost small businesses £22,000 a year on average, government cites
London, UK – 20 January 2025 – Late invoices are the primary culprit for causing cash flow problems for businesses according to two fifths (41%) of UK small and medium-sized enterprises (SMEs) while making sure the bills are paid was an issue for a third (32%) and having access to emergency cash (21%) was also top of the list. That’s according to Allstar, one of the UK’s leading business, EV and fuel expense payment companies, which researched the issues plaguing the nation’s small businesses.
Blue Monday, coined the “most depressing day of the year” has very real implications across the board with the post-holiday season leaving many with squeezed pay packets and budgets. Given 80% of workers said that they are more productive when they are healthy and happy, Blue Monday may even result in reduced productivity, impacting and adding even more strain on businesses which may already feeling the pinch when it comes to cash flow.
Late payments are costing small businesses £22,000 a year on average, with the government announcing the New Fair Payment Code. This will include new measures and a consultation to combat the issue, which leads to 50,000 business closures a year.
Allstar’s research, which surveyed 500 UK SME business owners and decision makers, completed with Censuswide, found that over half (54%) cite cash flow an issue and up to 70% say that the burden of cash flow and admin has significantly hampered business growth.
Cash flows are being impacted predominantly by inefficiencies, and just over half say they spend up to 6 hours managing costs and their cash flow. Burdened with a daily onslaught of challenges including cash flow management, SME owners are now more than ever on the lookout for little wins that make their lives easier by removing points of friction and simplification. More than a quarter (28%) said that faster payment of invoices is the key to helping their business save time, and 27% say it would solve admin and cash flow problems.
At what is a particularly tough time of the year, businesses could drive down their cash flow headaches by harnessing the latest tools and products that could give customers up to 44 days interest free credit on all business purchases*, like Allstar’s all-in-one solution. Allstar Plus could help to make business payments and expenses easier to manage, as one relationship creates ‘less work’.
Paul Holland, Managing Director for UK/ANZ Fleet at Corpay, including UK brand, Allstar, said: “It’s a tough climate for the UK’s SMEs; our insights show that one of the biggest issues that are impacting cash flow are late payments, something that kills 50,000 businesses in the UK every year. And while Blue Monday might not be grounded in science there is a lot to be said for the change in behaviours and attitudes around this time of year.”
“Business owners and proprietors can take a proactive approach to mitigating these issues, with the aim of simplifying their operations and improving efficiencies, making these arduous tasks less work. An all-in-one solution achieves this by enabling more simplicity and easier management.”
“In doing so, SMEs can re-focus their attention to 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. This way we all thrive.”
To find out more about Allstar and its business payments solution, its Allstar Plus card visit: https://allstarcard.co.uk/solutions/business-payments/allstar-plus or contact our expert team at: 0345 266 5101.
*Subject to status and a full credit check. To be eligible for Allstar Plus, your company must be incorporated (e.g. a limited company).
About Allstar
Allstar is the UK’s market leading fuel, EV and expense card providers for businesses, with over 40 year’s expertise. As the UK’s largest fuel card network, Allstar is accepted at over 90% of fuel sites across the UK. It has over 1.2 million cards in circulation across 50,000 businesses, giving drivers’ access to fuel spend across all supermarkets, major oil companies and motorway fuel sites.
Its EV network is the UK’s largest and fastest electric charging network for businesses and encompasses more than 22,000 locations nationwide, alongside more than 40,000 charge points and over 59,000 chargers across its growing electric vehicle charging network. 86% of its electric vehicle charging network is fast, rapid and ultra-rapid.
Helping customers with all payment needs, Allstar equips businesses with the tools to run with maximum convenience, cost efficiency, control, and credit where required. This includes up to 44 days interest free credit* on purchases like paying suppliers and business travel, and the power to set card level spending limits and control access on each card. A single streamlined process for all business expenses simplifies admin and cuts down on paperwork.
For more information, please visit: www.allstarcard.co.uk
* Subject to status and a full credit check. To be eligible, your company must be incorporated (e.g. a limited company).
About Corpay
Corpay (NYSE: CPAY) is a global S&P500 corporate payments company that helps businesses and consumers pay expenses in a simple, controlled manner. Corpay’s suite of modern payment solutions help its customers better manage vehicle-related expenses (like fuelling and parking), travel expenses (like hotel bookings) and payables (like paying vendors). This results in our customers saving time and ultimately spending less.
Corpay – Payments made easy.