FUTURE OF FINSERV new and changing technologies and business models that affect federallysupervised banks .
Ash Botten According to the ( UK-based ) Federation of Small Businesses , 52 % of small businesses experience late payments , causing 37 % to apply for credit to manage their cash flow . This is threatening jobs and damaging the economy .
Over the last few years , the UK Government has introduced many reforms to the Prompt Payment Code , an initiative designed to speed up cash flow , increase compliance and stimulate business growth . But , despite almost 3,000 companies signing the code , poor payment practices run rampant . In 2022 , SMEs were owed , on average , an estimated US $ 28,000 in late payments .
With opportunities to boost the economy by US $ 3.2bn by paying small businesses on time , the future of regulation in financial services must address late payments . Whilst these new Prompt Payment measures will help to some degree , ultimately the solution lies at the root of the issue : manual finance operations .
Often , it ’ s not the case that large firms making payments to small businesses don ’ t want to pay on time – it ’ s that they are operating manually and cannot keep up with the workload . fintechmagazine . com 117