According to new research from credit reference agency, Ormsby Street, almost half (48%) of freelancers have considered quitting because of worries over continued late payments. The survey of 1,000 freelancers and sole traders found that At any one time, a freelancer in the UK is owed on average £5,431.03 in late payments and 79% of freelancers say that cash-flow is the number one concern for their business.
A really worrying statistic in the report is that one in ten freelancers has faced difficulties paying their mortgage or rent because of late payments and that more than a third (36%) of respondents said they had used a payday loans company to cover a shortfall, while 37% had borrowed from a family member.
The research also found that only 19% of freelancers are always paid on time and 52% of respondents believe the issue of late payment is getting worse.
A major problem for freelancers is time to chase clients and the fear that chasing will jeopardise future opportunities with that particular customer whilst two-thirds say they feel awkward about chasing late payments.
Further details of the research can be found athttps://blog.ormsbystreet.com/2016/06/03/late-payment-threatens-to-derail-the-freelance-industry/
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