SMEs are the backbone of the global economy, yet many of their leaders suffer in silence with mental health issues.
This is often because they feel like they can't take time off to address their health issues, or the stress of managing critical receivables is too great.
Thankfully, there are ways to ease the burden of receivables and help SME leaders take care of their mental health. One way is through automated receivable processes.
Chaser is an automated receivables tool that helps remove the burden of chasing payments from your plate. In this blog, we'll discuss how Chaser can help take some of the stress out of receivables and help you take care of your mental health.
The importance of SMEs to the global economy
The importance of SMEs to the global economy cannot be understated. They make up the vast majority of businesses worldwide, and they are responsible for a large percentage of employment.
In fact, small and medium-sized enterprises (SMEs) represent about 90% of businesses and more than 50% of employment worldwide.
SMEs are also responsible for a large percentage of innovation and new job creation. In developed countries, SMEs account for 60-70% of new jobs created.
So, it's clear that SMEs are vital to the global economy. But what does this have to do with receivables and mental health?
Well, as an owner or manager of an SME, you likely wear many hats. And one of those hats is probably "accounts receivable manager."
Chasing payments can be time-consuming and stressful. It's often difficult to find the time to focus on other aspects of your business when you're constantly having to chase down late payments. This can lead to burnout and, eventually, mental health issues.
Small and medium-sized enterprises (SMEs) represent about 90% of businesses and more than 50% of employment worldwide.
What are the mental health issues suffered by SME leaders?
The most common mental health issue suffered by SME leaders is anxiety. This can manifest itself in a number of ways, including:
- Worrying about making payroll - This is a common worry for SME leaders. If you're constantly worried about whether or not you'll be able to make payroll, it can take a toll on your mental health. Constant worry is one of the main symptoms of anxiety.
- Constantly thinking about money - If you're always thinking about money, it can lead to anxiety and even depression. It can be hard to enjoy your life when you're constantly worried about money, which will only make your mental health worse
- Not being able to enjoy your success - When you're constantly worried about money, it's hard to enjoy your success. This can lead to feelings of insecurity and inadequacy. Imposter syndrome is also common among business owners and entrepreneurs and can make it hard to enjoy your success.
- Obsessing over late payments - If you're obsessing over late payments, you're likely not focusing on your business's positive aspects. This can lead to anxiety and depression.
- Worrying about the future of the business - If you're constantly worrying about the future of your business, it can impact your ability to make decisions and take action in the present.
These worries can lead to sleepless nights, which can then lead to a whole host of other problems, including fatigue, irritability, and poor decision-making. If left unchecked, anxiety can quickly spiral out of control and become debilitating.
Depression is another common mental health issue that can be brought on by running a small business.
There are a number of factors that can contribute to depression, including financial stress, isolation, and the fear of failure.
Like anxiety, depression can also have a negative impact on your ability to run your business effectively. If you're feeling depressed, it's important to seek help from a professional so you can get back on track.
Ignoring your mental health will only make things worse in the long run. If you're struggling, reach out for help sooner rather than later.
How the late payment crisis is exacerbating the situation
It's no secret that late payments are a big problem for small businesses. In fact, according to a recent report from the U.K.-based Federation of Small Businesses, late payments have risen to their highest levels in four years.
This is clearly having an impact on the mental health of small business owners. According to the FSB, nearly one in five (17 percent) say they've experienced anxiety or depression as a result of late payments.
Research from ACCA and The Corporate Finance Network reveals that reported mental health issues amongst SME leaders have more than doubled, from 13% in March to 35% in June.
What's more, the late payment crisis is only exacerbating the situation. With cash flow already tight, businesses are struggling to stay afloat and meet their obligations. This can lead to even more financial stress and anxiety, which can quickly spiral out of control.
Currently, SMEs are owed a staggering £50 billion in late payments, and the situation is only getting worse. In fact, the average SME is owed a whopping £40,000 at any given time.
This can have a devastating effect on a business, both financially and emotionally as liquidity issues can quickly mount up and are one of the most common causes of business failure. Around 82% of businesses that fail do so because of cash flow problems, so it's clear to see just how important it is to keep on top of your finances.
To make matters worse, late payments are often accompanied by high-interest rates and fees, which can further add to the financial burden. This can soon become a never-ending cycle of debt that's very difficult to break free from.
It's clear that something needs to be done about the late payment crisis. Businesses need to be paid on time, and they need to be able to access the funds they're owed quickly and easily. That's why we've developed a revolutionary new platform that does just that.
How automation can help to end the late payment crisis
When you run a business, it's important to get paid on time. Not only does this ensure that you can keep the lights on and pay your employees, but it also shows your clients that you're reliable and efficient. Fortunately, there are now automated systems that can help with this.
An automated invoicing system can save you a lot of time and hassle. Instead of having to chase down clients for payments, you can simply send them an invoice and know that the money will come in when it's supposed to. This can be a huge relief, especially if you're used to dealing with late payments.
Chaser is an automated credit control platform that makes it easy for businesses to get paid on time. With Chaser, you can automatically chase your invoices and receive payments in just a few clicks.
There are a range of benefits that come with using Chaser, including:
Reduced admin
With Chaser, you can say goodbye to the time-consuming task of chasing invoices manually. Our automated system will do it all for you, so you can focus on running your business.
One of the major issues caused by the rise of late payments is the cost and time required to chase invoices manually. Business owners and managers are often forced to spend valuable time on the phone chasing late payments, which takes them away from other important tasks.
Improved cash flow
Late payments can have a serious impact on a business's cash flow. This is because businesses rely on incoming payments to keep their operations running smoothly. When payments are delayed, it can cause major disruptions and financial difficulties.
Chaser can help to prevent these problems by automatically chasing up late payments on your behalf. This way, you can be sure that your invoices will be paid on time, every time.
Better relationships with clients and suppliers
Being able to proactively chase up late payments can also help to improve your relationships with clients and suppliers.
When you're able to resolve payment issues quickly, it shows that you're reliable and efficient. This can lead to better terms and conditions in the future, as well as improved relations overall.
Chaser's automated systems reduce the awkwardness of chasing up payments, by sending automatic reminders for you. This way, you can focus on your business, safe in the knowledge that your invoices will be paid on time.
Increased efficiency and productivity
As well as freeing up your time to focus on other areas of your business, using an automated system can also help to increase your efficiency and productivity.
Greater efficiency can lead to increased profits, which is always good news for business owners, and it can also help to reduce the amount of wasted resources. This is because automated systems can help to eliminate errors and mistakes, which can often lead to wastage.
Multiple payment options
Chaser offers a range of payment options to suit your business. You can choose to receive payments via bank transfer, PayPal, or Stripe. This means that you can get paid quickly and easily, without having to chase up late payments.
Additionally, through the ability to offer payment plans to your customers, you can offer them greater flexibility and convenience when it comes to paying their invoices. This can help to improve customer satisfaction levels, as well as reducing the amount of time spent chasing up payments.
How automation can help to reduce stress
With many SME owners finding themselves constantly chasing up late payments, it can be difficult to find the time to focus on other aspects of your business.
This is where automation can help.
By setting up automatic payment reminders, you can take the hassle out of chasing payments. These reminders can be sent via email, SMS or Auto-call, and can be customized to suit your needs.
You can also set up automatic payment plans, so that your customers can make payments on a schedule that suits them. This can help to reduce the amount of time spent chasing up payments, as well as improve customer satisfaction levels.
If you're looking for a way to reduce stress and free up some time in your schedule, automating your invoicing process is a great place to start. With the right tools in place, you can take the hassle out of chasing payments and focus on other aspects of your business.
With Chaser, you can automate your invoicing process with ease. We offer a range of features to suit businesses of all sizes, and our team is always on hand to help with any questions you may have.
Try it for free or book a demo with us and see how Chaser could save you 20+ hours per week.
