Over a third (39%) of small businesses in the UK have yet to draw up plans to switch to the UK's Bacstel-IP payment network, despite the looming December migration deadline, according to research by clearing house Bacs.
Despite the lack of planning, almost nine out of ten (87 per cent) of small businesses interviewed are aware of Bacstel-IP, but fewer respondents - four in ten - know of the end-of-year deadline.
Over a quarter (28%) of respondents said funding was a major concern and the main reason for delaying migration, but Bacs claims that this is a misconception as migrating to the IP system could cost just £40 per month.
Commenting on the research, Mike Hutchinson, marketing manager, Bacstel-IP, says: "The small business market makes up about £500 billion of the UK's GDP and it is vital that this crucial sector starts planning now as there are only a few months until the migration deadline.
"Unless companies instigate plans to migrate straight away they may well have to resort to making wage and other payments using cheques or even cash."
Michael Chambers, MD of Bacs Payment Schemes, says overall 45% of businesses have switched to Bacstel-IP, but certain industry segments are not keeping up with others in terms of adequate planning for migration, with the performance of small businesses being a particular cause for concern.