Business

Belfast SMEs count hidden cost of dealing in cash

Dealing in cash comes at a huge cost for businesses in Northern Ireland, a study shows
Dealing in cash comes at a huge cost for businesses in Northern Ireland, a study shows Dealing in cash comes at a huge cost for businesses in Northern Ireland, a study shows

DEALING in cash is costing small businesses in UK a staggering seven million hours a week and £39 million a year in mistakes and lost change, research from cards processing firm Square has revealed.

And Belfast businesses dedicate the longest amount of time each week at the bank dealing with cash at two hours and 42 minutes, against the UK average of just 81 minutes.

Yet despite the costs of cash-handling, more than half of all small businesses (54 per cent) still don’t accept cards, putting themselves at risk of missing sales.

The findings have prompted entrepreneur and best-selling author Sahar Hashemi to urge SMEs to embrace new technologies to future-proof their operations.

Helen Prowse from Square UK said: “There’s so much to think about when you are running your own small business and accepting digital payments may not be top of your list. But it is easier and more affordable than you might expect.

“Operating as a cash-only business is fast becoming an unsustainable business model. We want to help business owners better understand the hidden costs of cash and the benefits of accepting card payments, so that they do not get left behind.”

Statistics relating specifically to Northern Ireland reveal that 61 per cent of businesses take cards for payment - the highest of all UK cities.

Some 64 per cent of businesses in the north started to take cards due to requests from customers – again the highest percentage for requests nationally - while nearly three quarters of local businesses say they've have seen their takings increase since accepting cards.

Also Belfast shows the highest percentage of people not returning after promising to pay (28 per cent), with 56 per cent of businesses having had a customer not pay for a goods or service.

The study was conducted after statistics reveal that 3,300 bank branches have shut since 2015, and nearly 500 ATMs a month are being closed, meaning cash can be hard for shoppers to access and spend.