Self-employed workers are owed on average £208, which equates to 18% of earned cash income for a sole trader.
However, tThis amount rises to a staggering £1846 a month for businesses with 1-9 employees.
A study by Paym showed that traders such as cleaners and decorators were being forced to chase customers for money, with 30% of workers saying they had stopped providing services to a customer due to consistent late payments.
With many small businesses not accepting card payments due to the cost or inconvenience, 44% of customers admitted they had needed to make a dash to a cashpoint.
Paym allows customers to transfer money using just the recipient’s mobile number. There is no need to exchange account numbers or sort codes.
Craig Tillotson, Managing Director of Paym said: “Window cleaners, gardeners and decorators are facing challenges from well-meaning customers who often don’t have the cash on them to pay there and then.”
“We know that many small businesses rely on their mobile to run their business and Paym makes it possible to use that vital phone number to easily accept payments.
“We’re urging businesses and self-employed people to sign up today and to spread the word amongst their customers,” explained Craig.
“It should help both parties avoid awkward situations or inconvenient trips to the bank.”
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