The issue of late payments is becoming a culturally unacceptable business practice for a growing number of business owners.
In the U.S., the National Small Business Association found that the fear of not getting paid is the top concern of small and medium-sized enterprises (SMEs) in regard to the global import-export market. Research carried out for the European Commission suggests that eliminating chronic late payments in Italy, Spain and Portugal would reduce business exits. This equated to up to 248,000 additional enterprises staying in business each year.
Futurist Gerd Leonhard, who our company collaborated with for a recent small-business trends report, predicts that the solution to the late payments issue is related to the increased use of digital payment tools.
As ways of working continue to evolve, so too will payments requirements. As a consumer, you wouldn’t purchase an item by being given an invoice that you pay within 30 days, because payment is instant. Business is decades behind. However, the pandemic has demonstrated the radical changes businesses have made through digitization to get paid easier and faster with the use of e-commerce apps.
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