Mastercard pledges further support for small businesses and Good Business Pays Campaign through its Strive UK programme
Businesses must tackle late payments to unlock growth for the UK’s small businesses, according to campaigning organisation Good Business Pays.
Research commissioned in 2022 by Good Business Pays from the Centre for Economics and Business Research (CEBR) showed that up to £60bn of additional revenue could be unlocked for small businesses if large customers paid on receipt of invoices. Yet data collected by the government’s Business Energy and Industrial Strategy (BEIS) department reveals that 70-80% of businesses pay later than settlement terms.
Government figures estimate there is more than £23.4bn currently owed in outstanding invoices to UK businesses, with small businesses spending an average of 3.6 hours a week chasing payment.
Founded in 2021, Good Business Pays campaigns to encourage large businesses to adopt fast payment processes and is supported by leading financial institutions. Mastercard was awarded a Good Business Pays ‘Fast Payer Award’ in 2022, an initiative which recognises businesses which not only pay on time but fast.
Announcing Mastercard’s continuing support for the Good Business Pays Campaign, Founder and CEO Terry Corby said: “In challenging economic circumstances late payment is a problem that has been overlooked by big business for too long, so we are delighted to secure the backing of Mastercard for another year. Small and mid-sized companies need financial certainty of cash flow – especially as they face economic ongoing turmoil that will only be exacerbated by the end of the energy grant in April.”
Mastercard and Good Business Pays will work together through Mastercard’s Strive UK programme to help small and micro businesses with support, advice, and practical guidance on how to navigate payments, including new digital payments solutions.
Mastercard is also developing solutions that make it easier for businesses to manage cash flow, expand payment options and help suppliers get paid on time. Last year it launched Mastercard Track Card to Account Transfer, a new business-to-business payment solution which allows businesses to use their commercial card programme to make payments to any supplier, regardless of whether the supplier accepts card payments.
Kelly Devine, President, UK&I, Mastercard commented: “Late payments hold small businesses back, so it’s vital that big companies tackle the issue. Our own research shows us that small businesses want more support to navigate digital tools that could help them get paid faster, so as well as backing Good Business Pays, we’ll provide practical support through our Strive UK programme.”
The Good Business Pays Campaign is backed by the Federation of Small Businesses, CBI, manufacturers’ group Make UK, British Chamber of Commerce, and Institute of Directors.
Terry Corby added: “We continue to call on large businesses to sign up to Good Business Pays principles to ensure small businesses continue to thrive in 2023.”