Millennials are more than twice as likely as Baby Boomers to agree that they’d feel uncomfortable asking customers for Payment (42% compared to 20%), suggesting a generational gap exists regarding how business leaders operate and interact with customers.
When it comes to feeling ‘awkward’ about money, millennials were also significantly overrepresented in the findings, with three in five (62%) of millennial business leaders agreeing they’d feel uncomfortable chasing customers for late payments, compared to 40% of Gen X and 36% of Baby Boomers.
Half of all millennial business leaders also agree they now find it harder to talk about money with customers than before the rise in the cost of living. 70% of millennials are also concerned the problem of late-paying customers is only set to worsen this year as the cost of living rises.
The data also reveals a gender gap in payments confidence, with 29% of women agreeing they’d feel uncomfortable asking customers for payment, this rises to almost half (46%) when it comes to chasing late payments. However, only 26% of men feel uncomfortable asking for payments and 40% share this experience chasing payments.
GoCardless, the bank payments company, has launched its new ‘Pursuing Payments’ report, revealing the impact the ongoing cost of living crunch is having on the cashflow security of small and medium businesses (SMB) in Australia.
The report, surveying more than 500 Australian small and medium-sized business owners and primary decision-makers in the private sector, revealed that the cost of living crisis, among other factors, has impacted business operations across Australia, with 55% of business leaders worried that the number of late-paying customers will increase in the next 12 months. This is a major concern, given that 50% of respondents admitted they avoid awkward money conversations with their customers.
Additionally, 86% of respondents who have avoided money conversations with customers in the past 12 months say there has been some impact from avoiding such conversations. 19% of respondents estimate their business loses between $6,000 and $30,000 from late payments annually.
Stress and operating costs push business leaders to chase late payments
According to respondents who have avoided money conversations, this has resulted in many negative impacts for businesses and their leaders, including:
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increased stress for business leaders personally (43%)
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increased stress at work (37%)
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their business being paid late (36%)
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financial losses for their business (31%)
Inversely, the top reasons cited by businesses for being more likely now to have a conversation about late payments with customers compared to last year include:
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operating costs for businesses rising, making payments more urgent (55%)
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the realisation customers weren’t put off by the conversation (44%)
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being fed up with not receiving what they were owed (34%)
