{"id":74560,"date":"2019-04-15T10:00:00","date_gmt":"2019-04-15T10:00:00","guid":{"rendered":"https:\/\/interac1.wpengine.com\/content\/%content-category%\/canadas-entrepreneurs-say-not-getting-paid-on-time-hinders-growth\/"},"modified":"2025-01-27T14:09:54","modified_gmt":"2025-01-27T19:09:54","slug":"canadas-entrepreneurs-say-not-getting-paid-on-time-hinders-growth","status":"publish","type":"content","link":"https:\/\/stage.interac.ca\/en\/content\/business\/canadas-entrepreneurs-say-not-getting-paid-on-time-hinders-growth\/","title":{"rendered":"Canada\u2019s entrepreneurs say not getting paid on time hinders growth"},"content":{"rendered":"

Seven in 10 of Canadian side hustlers and micro-business owners say customers don\u2019t pay on time<\/em><\/p>\n

TORONTO, April 15, 2019 <\/strong>\u2013 Getting paid on time is a major problem for Canadian entrepreneurs. According to a survey from Interac Corp., seven in 10 (71 per cent) of Canadian side hustlers and micro-businesses (businesses with up to five employees) struggle to get paid on time, and spend valuable time chasing late payments. More than half of respondents (58 per cent) say following up to get paid is a drain on their time and productivity, and a quarter (25 per cent) are not spending enough time growing their business as a result.<\/p>\n

\u201cIf Canada\u2019s entrepreneurs can\u2019t get paid on time, it hurts their bottom line and ability to scale,\u201d says Peter Maoloni, VP Product & Platform Development, Interac Corp. \u201cSide hustlers and micro-businesses need ways to get paid faster \u2013 beyond the traditional cheque or multiple email reminders \u2013 that allows them to spend less time following up with clients, keeps them out of personal debt and spend more time growing their business. \u201d<\/p>\n

For side hustlers and micro-businesses, late payments can have a significant impact on cashflow, even hindering their ability to make payroll and pay their vendors. In order to keep their business in good standing, 58 per cent of entrepreneurs polled confessed to dipping into money from their personal accounts to fund their venture when necessary. Furthermore, one-third (33 per cent) have taken on $10,000 or more in debt to fund their business or side hustle, with 14 per cent taking on $50,000 or more.<\/p>\n

In the face of this cashflow conundrum, 66 per cent say there is a need for the business payments landscape to be modernized. Two-thirds (66 per cent) of businesses wish they could get paid by their clients as quickly and conveniently as their friends reimburse them for dinner. Overall, their preferred payment method for their business is online money transfer (73 per cent).<\/p>\n

\u201cThe data highlights that Canadian entrepreneurs are impatient with the status quo when it comes to business payments \u2013 the cheque has got to go,\u201d said Maoloni. \u201cInterac<\/em> e-Transfer features like Request Money are being used by micro-businesses to ask their clients to pay up, professionally and politely, and get paid instantly.\u201d<\/p>\n

Stats at a Glance:<\/strong><\/p>\n