Late payments are the scourge of SMEs – and the problem appears to be getting worse. A new report from Xero revealed that between April and June 2024 payouts to small businesses were, on average, made 7.3 days late, an increase of 1.8 days on the previous quarter.

Around 50,000 small businesses in the UK will go bust this year because of late payments, which will in turn have a detrimental impact on suppliers and clients associated with those businesses.

As Kate Hayward CA, UK Country Manager at Xero, said, “To wait over a week for payment owed is an unacceptable and unsustainable financial model for small businesses.

“Our latest data once again highlights the challenging economic environment that small businesses nationwide are facing, without having to chase down ‘unapproved debt’ being hoarded by customers, placing immense strain on both cashflow and business owners’ livelihoods.”

Little wonder, then, there are calls for the new government to get tougher on late payments. “We urge them to swiftly convert their commitments into action through introducing legislation as part of the Draft Audit Committee Bill,” Hayward adds.

Against this backdrop, CA magazine and ICAS recently held a webinar titled “AI, APIs and Getting Paid Faster: Unlock the potential of emerging tech”. The webinar, hosted by Xero’s Education Specialist, Ashley Hendry, set out to address this common pain point and show how leveraging Xero’s AI and API (application programming interface) capabilities can significantly improve cashflow and reduce that pain.

Key learning points
• Learn how AI can streamline invoicing processes, reducing the likelihood of payment delays.
• Understand how AI and API capabilities can enhance cashflow management.
• Learn strategies to reduce the pain of late payments and improve overall financial health.
• Explore the possibilities of integrating Xero with other tools and systems to unlock new efficiencies and insights.

Further links
Tap to Pay Beta
JAX video

Learn more about Xero's late payment resources