Top Business News

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 28/11/2019

The cost for SMEs to chase outstanding and late invoices is in the billions of pounds according to data from Pay.UK and QlikBooks. Pay.UK have published a figure of £4.4 billion, while QlickBooks reports a higher figure of £6.3 billion to follow up and manage late payments.

 According to the data published, small businesses are using 56.4 million hours to chase overdue payments and 22% spend more than £500 every month to keep on top of their accounts receivable.

A new pension provider has been launched that is targeted towards the self-employed and more specifically freelancers.

Penfold is targeting the 15% of the UK workforce who are currently self-employed and has stated that it aims to revolutionise the pension industry for UK freelancers. According to figures released by Penfold, five million workers are currently self-employed and, of these, 86% currently do not save into a pension. The company is hoping to change this by offering self-employed workers with a pension that is clear, simple, digital and can be activated in under five minutes.

Once the pension is activated, contributions can be paused, topped up with a bonus and combined with multiple pension balances. Penfold states that users can choose where their money is kept or invested, and the dashboard explains how much they have saved and how far off they are from their ultimate end-goal.

Pete Hykin, co-founder of Penfold, explained: “We know that auto-enrolment has increased participation in pensions to 80% among the employed, but this hasn’t helped the millions of UK self-employed.

“It’s almost like the self-employed, who we know are the backbone of the economy, are being ignored by the Government and UK industry. There are absolutely no pension options out there that adequately serve those working for themselves.

“We’re aiming to make pensions not just easier, but more attractive for self-employed people to start planning for later in life. Often people put off setting up a pension due to the amount of understanding needed, the volume of paperwork and even just the fact that it can involve calling multiple providers to find the best option. Our research has shown the scheme needed to be flexible and adapt to the end-user, not the other way around.”

Chris Eastwood, co-founder of Penfold, added: “Pensions for the self-employed is just phase one of the Penfold plan. The great thing about the pension industry is that there’s so much room for improvement – whether it’s the option of setting up or paying into a pension for your children, giving people more visibility and control over the environmental or social impact of their pension investments, or even earning rewards like airmiles for every contribution. Our aim is to make pensions as accessible and engaging as banking has become.”

SMEs are opting to keep their money in accounts that can be easily accessed rather than depositing funds into long-term accounts, research from the Centre for Economics and Business Research (Cebr) has found.

The research, which was carried out on behalf of Shawbrook Bank, reveals that of more than £300bn SMEs hold in cash, 57% is deposited in current accounts. While small business owners are preferring to keep their money in easy access accounts, this could mean they are missing out on potentially earning higher interest if they lock their money into a fixed long-term account, especially as the research found that, on average, businesses only require ‘ready-access’ to 31% of their cash reserves.

When it comes to business savings accounts the market is still offering inflation-beating interest rates for those organisations that are happy to lock their funds away for at least 24 months. In addition to this, a few providers are offering rates that look set to stay ahead of inflation until 2022.

According to the latest data from Moneyfacts.co.uk, the average monthly interest rates for bridging loans have reduced from just under 8% since the start of the year and now. Rates have dropped from 0.798% per month to 0.736%. During the past 11 months, only one bridging lender has increased its rates, while there have been eight rate reductions. The analysis included between 40 and 46 providers during the year.

Search Business News

Search Business News

Recent News

news icon
Bespoke bank for SMEs granted banking licence

11th September 2019

Allica, a bespoke bank for SMEs, has been granted a banking licence by the Prudential Regulation Authority (PRA) and will be dually regulated by the PRA and the Financial Conduct Authority (FCA)

Allica, a bespoke bank for SMEs, has been granted a banking licence by the Prudential Regulation Authority (PRA) and will be dually regulated by the PRA and the Financial Conduct Authority (FCA)

Read More
news icon
Rate rises make business savings accounts chart more competitive

5th September 2019

Business savers are benefiting from increased competition in the market, with Redwood Bank increasing rates on both its one year business bond and 95-day business savings account

Business savers are benefiting from increased competition in the market, with Redwood Bank increasing rates on both its one year business bond and 95-day business savings account

Read More
news icon
Revealed: where to find the best business savings accounts August 2019

1st September 2019

This month's roundup of the best business savings accounts

This month's roundup of the best business savings accounts

Read More
news icon
United Trust Bank enhances its Bridging products

23rd August 2019

United Trust Bank (UTB) has introduced a range of enhancements to its bridging products that are designed to reduce costs for borrowers and increase the speed and simplicity of the applications

United Trust Bank (UTB) has introduced a range of enhancements to its bridging products that are designed to reduce costs for borrowers and increase the speed and simplicity of the applications

Read More
(showing 1 to 4 of 21) (showing 1 to 4 of 21)

Most Popular Business News

news icon
Bridging loan rates now lower than the start of 2019

6th November 2019

According to the latest data from Moneyfacts.co.uk, the average monthly interest rates for bridging loans have reduced from just under 8% since the start of the year and now. Rates have dropped from 0.798% per month to 0.736%. During the past 11 months, only one bridging lender has increased its rates, while there have been eight rate reductions. The analysis included between 40 and 46 providers during the year.

According to the latest data from Moneyfacts.co.uk, the average monthly interest rates for bridging loans have reduced from just under 8% since the start of the

Read More
news icon
SMEs face rising costs of late payments

28th November 2019

The cost for SMEs to chase outstanding and late invoices is in the billions of pounds according to data from Pay.UK and QlikBooks. Pay.UK have published a figure of £4.4 billion, while QlickBooks reports a higher figure of £6.3 billion to follow up and manage late payments. According to the data published, small businesses are using 56.4 million hours to chase overdue payments and 22% spend more than £500 every month to keep on top of their accounts receivable.

The cost for SMEs to chase outstanding and late invoices is in the billions of pounds according to data from Pay.UK and QlikBooks. Pay.UK have published a figur

Read More
news icon
New pension aimed at freelancers

21st November 2019

A new pension provider has been launched that is targeted towards the self-employed and more specifically freelancers

A new pension provider has been launched that is targeted towards the self-employed and more specifically freelancers

Read More
news icon
SMEs are choosing easy access over fixed rate savings accounts

21st November 2019

SMEs are opting to keep their money in accounts that can be easily accessed rather than depositing funds into long-term accounts

SMEs are opting to keep their money in accounts that can be easily accessed rather than depositing funds into long-term accounts

Read More

More Money and Finance News

Get our weekly newsletter

Weekend Moneyfacts is available free by email to all Moneyfacts.co.uk users.

Please send me Weekend Moneyfacts, Savers Friend and selected third-party offers.

Cookies

Moneyfacts.co.uk will, like most other websites, place cookies onto your device. This includes tracking cookies.

I accept. Read our Cookie Policy