East of England residents are the worst culprits when it comes to paying local sole traders late, creating an annual loss of £6,108 per microbusiness over the last year. This is more than double the national average of £2,472, according to new research by Paym, the UK’s mobile payment service.
Forgetting payments seems to be a widespread practice across the Eastern counties with two in five sole traders (43%) abandoning the chase for a payment over the past year, a figure well above the national average of 30%. So not only are the electricians of Essex and caterers of Cambridge missing out on their hard earned cash, but they’re also spending precious time chasing customers.
While they may be known for their relaxed lifestyle in the South West of England, locals are the most prompt payers, as only 21% of sole traders have needed to chase customers. As a result they’re also the region reporting the lowest loss to their earnings due to abandoned payments, although sole traders still report losing out on £105 a month.
Other regions that have better habits for paying punctually include the South East and Wales, where a quarter (25%) have abandoned chasing payments, followed closely by London (26%). Regions joining the East of England for the most belated bills include Yorks& Humber (44%) and the West Midlands (37%).
While those in the South of England and Wales may be proud to be prompt, for the hardworking self-employed sole traders of Britain, one late or abandoned payment is one too many. Small outstanding payments can all add up and begin to take their toll on the tutors, tilers and trainers of Britain.
Craig Tillotson, Executive Chairman of Paym, said:
“While some regions may be worse than others, late or abandoned payments are continuing to be a growing problem for sole traders across the whole of Britain. Chasing up late and overdue payments eats up valuable time, so it is understandable that an increasing amount choose to cut their losses. However, the chase for payment can be countered by offering customers different payment methods. Paym is an easy alternative that works using your mobile banking app to send money with just a mobile number, the same way as a normal bank transfer without the need to hand over a sort code and account number.”
For sole traders, the problems do not end with chasing payments. Even when customers pay up, sole traders can still find themselves short changed. Sole traders in Wales are the most forgiving at ‘forgetting the change’, happy to let off customers for up to £7.75, almost triple the national average of £2.70.
However, with Paym, sole traders need not forgo their full payment, using the mobile payment service allows customers to transfer the exact amount required, with all customers able to send at least £250 per transaction, and some able to send higher amounts.
Paym makes it easy for small businesses to get paid straight into their bank account using just a mobile number. More than 20 million customers of 17 banks and building societies who use mobile banking can send payments straight from their banking app, with payments made at the same speed as payments sent using a sort code and account number (in most cases, almost immediately).
A further benefit of Paym is for added peace of mind, the sender is presented with the recipient’s business account name before confirming the payment, allowing them to check they are sending the money to the right place. Small businesses can find out how to register to receive payments by visiting: http://www.paym.co.uk/paym-for-business/