Small and medium-sized enterprises (SMEs) are struggling with slow cash flow and payment reconciliation, creating significant operational hurdles, according to new research from Adyen, a global financial technology platform.
The Adyen SME Platform Payments Survey, conducted with YouGov, found that 80% of SME decision-makers report slow cash flow negatively impacts their operations, particularly for businesses with over $10 million in annual turnover.
The research aligns with broader economic trends, as CreditorWatch data shows a 47% surge in invoice payment defaults over the past year, signaling financial stress. The hospitality sector has been hit hard, with record-high closure rates. Payment inefficiencies exacerbate these issues, with 73% of SME decision-makers citing payment reconciliation as a major frustration. On average, businesses lose six hours per week on accounting and reconciliation tasks.
Adam Seskis, CEO of RMS, a Software-as-a-Service (SaaS) provider in the hospitality sector, highlighted the impact: “Hospitality operators tell us that payment inefficiencies can be a major operational burden, impacting guest experiences and staff productivity. Many struggle with manual reconciliation processes, and a lack of integration between payment systems and other business tools. These challenges not only slow down daily operations but also create friction at critical customer touchpoints, from check-in to check-out.”
SaaS platforms key to solving SME payment woes
As SMEs seek solutions to cash flow challenges, SaaS platforms offering efficient payment management are increasingly vital. However, 57% of SMEs using SaaS platforms rely on multiple tools, adding complexity rather than streamlining operations, despite 70% reporting access to consolidated reporting. This gap presents an opportunity for SaaS providers to deliver more integrated solutions.
The survey found that 28% of SMEs using SaaS platforms would switch providers for better consolidated reporting, while 20% prioritize enhanced risk management. Seskis noted RMS’s success in addressing these issues: “By embedding automated, frictionless payment solutions into our platform via RMS Pay, we’ve helped businesses reduce an average of 10 hours a week in admin time, which ultimately allows them to focus on delivering great service. Beyond reconciliation, we’re also enabling SMEs to significantly reduce disputes by 93%, translating to an average of $50,000 to $200,000 per property.”
Hayley Fisher, Adyen’s Country Manager for Australia and New Zealand, underscored the potential for SaaS providers: “SaaS providers have an incredible opportunity to go beyond offering basic software solutions and become true enablers of SME success. By embedding payment technology that streamlines reconciliation and accelerates cash flow, SaaS platforms can help SMEs spend less time on admin and more time on growing their businesses. Those that step up with smart, seamless financial tools will become indispensable to their customers.”
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