The latest research by Pay.UK, who run the Bacs Direct Credit and Direct Debit payment services, proves that being owed money has a staggering impact on your mental health.
The financial impact of late payments is clear: the total SME late payment bill in 2019 amounted to over £23 billion. A sharp rise of over £10 billion in just 24 months.
But what of the human impact?
Speaking to small business owners from across the UK, the survey found that 26% worry about late payments when they aren’t in work. With 17% acknowledging that dealing with bad debtors has hindered their own professional confidence.
When owners await payment, their own businesses suffer as a consequence. 24% of SMEs pay their own suppliers late and 13% struggle to pay their own business bills. Unsurprisingly, the survey also found that two thirds of owners agree that late payments make running their businesses less enjoyable.
More worryingly still, the research found that 9% of business owners considered using professional help to support them with their anxiety: anxiety created by either late, or non-payment.
So it’s now proven that being owed money has a dramatic impact on mental health. And it’s easy to see why. Living with anger, frustration and powerlessness, especially over an extended period, damages every aspect of our lives.
Here at Cobra, we’re all too aware of the human impact of late payments.
When you’re owed money, it’s never out of your mind. When will my client pay? Why aren’t they answering my calls? Were they not satisfied with the service? Did I do something wrong? How will I cover my costs?
Ultimately, livelihoods are at risk when customers refuse to pay. And we know the experience of dealing with a bad debtor can cause indescribable worry, especially when dealing with more than one.
Our team have worked with clients who’ve told us their own self-esteem has been affected by their debtor’s refusal to pay. And sadly, we have even worked with clients whose own relationships have been destroyed through the stress of dealing with unscrupulous debtors.
Don’t give up
68% of small businesses have written off bad debt. They either can’t face the stress of the chase, or the amount is simply not justifiable enough to warrant commencing court proceedings.
But if you are owed £1,000 or more, then Cobra Financial Solutions will make sure that you are not part of this statistic.
The Cobra team have witnessed the very real impact of late payments. So we pride ourselves on taking the stress away from debt collection. We want you to prioritise the future of your business and your own wellbeing: not your debtor. We deal with bad debtors, so that you don’t have to.
Once we have received your instruction, we can visit your debtor within just 48 hours. And as soon as we have collected your money, we’ll transfer it straight back into your account. Where it belongs.
So no more chasing. No drawn-out court proceedings. No hidden fees. No dealings with solicitors. And no more stress.
If you are suffering at the hands of a debtor, call one of our team today, and let’s get started.