late payment

Late Payment Culture A “Chronic Disease” In Small Business Space

Late Payment Culture A “Chronic Disease” In Small Business Space

Just 51% of UK micro-business invoices were paid on time last year, according to FreeAgent. The survey of more than 600,000 invoices sent by over 6,600 micro-business customers revealed that businesses in Sheffield are the worst affected – with just 24% of all invoices settled within three days of being issued. In contrast, Manchester businesses have it the easiest when it comes to getting what they’re owed, as 75% of all bills are settled on time. City % of invoices paid on time Sheffield 24% Twickenham 27% Slough 29% Leeds 39% Stevenage 39%   City % of invoices paid on time Manchester 75% Aberdeen 61% York 61% Leicester 58% Norwich 58%   Last October, it was revealed that UK small businesses are going to receive a Tsar to help them tackle the issue of late payments in 2017. Ed ... »

Small Businesses Losing Thousands in Debt Every Year

34% of small and mid-sized businesses are failing to chase-up late payment debts, despite billions being owed Research shows that 34% of small businesses fail to pursue debtors, with 81% of businesses finding it ‘too uncomfortable’ and a fifth fearing it will cause them to lose customers. The report, by credit control service Satago, highlights that late payments remain a huge problem for the small and mid-sized business community with only 17% stating that there has been an improvement. This is not surprising considering a third of small and mid-sized businesses are writing off debt every year with 50% admitting that money could have been recovered if they had made an effort to pursue it. Furthermore, although businesses continue to lose money on unpaid debt and late payments, 77% do not ... »

Late Payment to SMEs Exceeds £35 Billion

Already under pressure from the tough economic conditions of the last four years, Britain’s small and medium-sized businesses are owed debts of £35.3 billion according to the latest research from Bacs Payment Schemes Ltd (Bacs). One positive factor about the research from the company behind Direct Debit was that the number of SMEs subjected to late payment had actually decreased, down from 861,000 to 785,000 businesses. However, on the down side, SMEs were owed more money than ever; on average, they were out of pocket to the tune of £39,000 at the end of 2010. By the end of 2011, the level of outstanding debt had risen to £45,000 for each firm. The combined debt owed has risen by nearly £2bn over the year from £33.5bn to £35.3bn. Bacs’ Head o... »

SMEs Spend 3 Weeks a Year Chasing Payment

New research from RBS Invoice Finance, suggests that small and medium sized businesses (SMEs) spend an average of 130 hours, or up to three weeks, per year chasing payments. In addition, the research shows that SMEs wait on average 30 days longer than their agreed payment terms before they actually receive the money. Those twin factors are contributing to the cash flow problems plaguing many SMEs. RBS Invoice Finance has issued five Golden Rules that can ease the burden of chasing payments and help businesses maintain a healthy cashflow: SMEs should think about re-visiting their current cashflow projections with a ‘worst case scenario’ in mind, so that they can see exactly what impact late payers are likely to have on the business – and then plan accordingly; Businesses might be able to en... »

Business Groups Call for Government Intervention on Late Payments

Almost a fifth of small firms have come close to going out of business due to cashflow problems arising from late payment, research by credit management firm Graydon has highlighted. The survey of 500 small businesses between March and April this year, conducted in partnership with the Forum of Private Business (FPB), revealed that 51% had their trading affected by late payment, while 23% admitted the issue was a serious problem for them. Customers extending their payment terms without notice or consultation were blamed by 65% of business owners, while a quarter reported that customers had withdrawn final payment without notice as a means of checking work quality. The poll also highlighted the ‘domino’ effect of late payment down the supply chain. Of the 59% of respondents who ... »

Exporting: Late or Non-payment for Overseas Sales

Exporting: Late or Non-payment for Overseas Sales

The risk of late or even non-payment can sometimes be greater when doing business internationally. Ensuring you get paid for overseas sales is a combination of assessing risk, settling on acceptable payment terms and methods and considering insurance to protect yourself against problems. To minimise the risks of nonpayment, you should research the market conditions in your target country and the credit worthiness of potential customers before you start trading. There are also currency issues you need to consider. In some countries where there are restrictions on access to foreign currency, your customers may face problems getting currency to pay you. In this case, it’s worth insisting on a (confirmed) irrevocable letter of credit that secures payments according to the terms of the cr... »

Business Owners Face Increased Late-payment Penalties

Business owners and the self-employed will face an increased penalty if they fail to file their paper-based tax returns before the 31 October deadline, HM Revenue & Customs (HMRC) has warned. Under the new penalty system, businesses which file their self-assessment tax return after the deadline will now face a £100 fixed fine, even if no tax is due. After three months, outstanding tax returns will incur fines of £10 a day and for delays of more than six months, a further fine of £300 or 5 per cent of the total tax owed will be issued, whichever is the greater. Fines would also be issued for late payment, HMRC said. Penalties will be charged at 5 per cent of the outstanding amount of tax at 30 days, followed by an additional 5 per cent at three months, then one year. I... »

Three-quarters of Small Businesses Still Paid Late

Almost three-quarters of small firms were paid late last year, research from the Federation of Small Businesses (FSB) has highlighted. The survey also revealed that 77% of late payments to small firms were from other businesses, not from the public sector. “In the current economic climate every penny counts and for small businesses a late invoice can mean not being able to pay their staff.” said FSB chairman John Walker. “All businesses need to ensure that they make payments on time if the private sector is to get on with the job in hand of strengthening the recovery.” Walked added that small firms could help prevent late payments by having a contract in place confirming payment times, offering a discount for prompt payments where appropriate and ensuring that all s... »

Top Ten Tips to Avoid Late Payment

A proactive approach to credit management is key to establishing good relationships and ensuring viable credit terms, which can then help small and medium-sized enterprises (SMEs) punch above their weight, says ACCA (the Association of Chartered Certified Accountants) and Kingston Smith LLP today. This advice, coupled with ten top tips for SMEs to cope with credit, comes after publication of the Independent Commission on Banking’s interim report on banking reforms last week. While ACCA does not believe that the Commission’s interim report will bring about any dramatic changes for SMEs in the UK when it comes to accessing finance, it does believe that practical guidance is needed for SMEs on what they can and should do to cope with money issues. This practical advice has been compiled... »

SMEs Bear Late Payment Burden of £30 Billion

SMEs Bear Late Payment Burden £30 Billion

A million plus small and medium sized British businesses have now been hit by late payments – and collectively, they’re owed a staggering £30.4 billion, according to Bacs Payment Schemes Limited (Bacs), the organisation behind Direct Debit and Bacs Direct Credit. That’s a rise of more than £11 billion over two years in the amount outstanding to the country’s SMEs (figures stood at £18.6 billion in 2007). While the average owed to individual SMEs at any one time has fallen in the past year from £38,000 in 2008 to £28,000 in 2009, the number of SMEs reporting that they are experiencing payment delays rose by just over 65%, up from 684,000 in 2008 to 1,085,000 in 2009. Michael Chambers, managing director of Bacs said: “The average am... »

Page 1 of 212