Study finds it’s harming the ability to scale their businesses
Canada’s small business owners would be able to focus more on growth if they didn’t have to spend time chasing late payments.
A survey from Interac Corp. has found that 7 out of 10 side-hustlers and micro-businesses (up to 5 employees) struggle to get paid on time with 58% saying it is a drain on their productivity and time; and 25% not spending time growing their business as a result.
“If Canada’s entrepreneurs can’t get paid on time, it hurts their bottom line and ability to scale,” says Peter Maoloni, VP Product & Platform Development, Interac Corp. “Side hustlers and micro-businesses need ways to get paid faster – beyond the traditional cheque or multiple email reminders – that allows them to spend less time following up with clients, keeps them out of personal debt and spend more time growing their business. ”
Cashflow impacted
The survey revealed the significant impact that late payments can have on cashflow with 58% of business owners admitting to dipping into their personal funds to fund their venture when necessary.
A third of respondents said they had taken on debts of $10,000 or more to fund the business, 14% had borrowed at least $50,000.
Most respondents (66%) said they wished they got paid as fast as friends reimburse them for dinner and 73% said they preferred money transfer for payments.
“The data highlights that Canadian entrepreneurs are impatient with the status quo when it comes to business payments – the cheque has got to go,” said Maoloni.”
Canada’s entrepreneurs say not getting paid on time hinders growth. Seven in 10 of Canadian side hustlers and micro-business owners say customers don’t pay on time. https://t.co/FGaQg2FLVP
— INTERAC (@INTERAC) April 15, 2019
