Can Late Payments lead to mental health issues in small business owners

When you own and run your own small business or micro SME one of the biggest issues you can face is non-payment of invoices for the goods and services provided. A lot of small businesses suffer from cash flow problems caused by slow paying customers or unpaid accounts, so that accumulated debt can spiral over time. We are all fully aware of the research carried out into the link between Debt and mental health issues across communities, and small business owners are far from immune. So, if you have a business relationship with any small business please think about the ramifications of non-payment or late payment on the business, and the people involved. 

The Federation of Small Businesses has stated that. “Being paid late and not knowing when payments are going to come in is one of the most challenging and frustrating issues affecting small businesses and self-employed people.”  Not being paid on time has grave consequences - 37% of FSB members have run into cash flow difficulties, 30% have been forced to use an overdraft and 20% cite a slowdown in profit growth.

Small businesses hampered by bad debt can struggle to obtain credit from lenders, leading to difficulties in the everyday running of a business, and limitations in growth when funds are not available to invest in new product lines or for marketing purposes.

The weight of the burden of business debt can cause owners high levels of stress, panic attacks, insomnia and other symptoms of poor mental health. Small business owners with mental health issues struggle to make good business decisions, find it difficult to look forward to the future, and generally find it increasingly difficult to cope with the running of their business.   

Staying on top of business debt can go a long way towards alleviating the feelings of extreme stress and anxiety caused by shouldering a business debt burden and struggling to keep a business afloat. If your business is suffering due to high levels of unpaid accounts or slow paying customers, acting quickly is important. Enlisting the help or seeking advice from a professional can provide debt relief, but more importantly, reduce stress and strain caused by outstanding payments. Remember that there are lots of options available to small business owners who need support and advice, or even training on how to deal with unpaid invoices or slow paying clients. 

·        Local Chamber of Commerce

·        Local Representative for Federation of Small Businesses

·        Solicitor