late payments

74% of Small Businesses Don’t Believe New Late Payment Legislation Has Worked

74% of Small Businesses Don’t Believe New Late Payment Legislation Has Worked

74% of small businesses don’t believe that late payment legislation introduced earlier this year has had any effect whatsoever– according to a report by Crossflow Payments. The survey of 1,031 senior decision makers has revealed that the vast majority of UK small businesses believe the new guidelines, which force larger businesses to detail how they pay smaller suppliers, will continue to make no difference to their business. It’s suggested that the new rules could actually have an opposite affect and worsen the “late payment crisis” – as larger corporates can now expand payment terms, giving the illusion they are paying on time. It’s estimated that £266bn is currently inaccessible to small firms – with one in ten admitting payment terms have worsened since the Brexit vote. Worryingly, 78%... »

How to Charge Interest on Late Payments

How to Charge Interest on Late Payments

Late payments are something to be avoided – they can halt your cashflow and, ultimately, stymie your business practices. Charging interest on late payments can be a good way of counterbalancing any cashflow difficulties and persuading debtors to pay up. Your right to collect interest on late payments is protected by law, and customers who refuse to pay interest can face legal action – though legal recourse should always be a last resort. This guide will help you: Establish whether and when to charge interest. Calculate the amount of interest owed. Persuade customers to pay. Should I charge interest? Remember that the interest you collect may not be worth the drawbacks that doing so will incur, especially if the debt amounts to an insignificant sum. Ask yourself the following three question... »

EU Membership and Reduced Tax Rates Top Small Business’ Manifesto

EU Membership and Reduced Tax Rates Top Small Business’ Manifesto

Remaining in the EU and a reduction on business tax rates are among the top requests small and medium-sized businesses want from the new Conservative government, with 30% of business owners stating so. The research from Bibby Financial Services, which asked 1,000 small firms which businesses policies they want to see in the next 12 months, found that other priorities included a simplified PAYE system (22%), an end to late payments (20%) and creating ways to increase the UK’s talent pool (19%). Medium-sized businesses (those with over £5m turnover) appear to be more concerned with changes to EU membership, with 34% naming remaining in the EU a top agenda. Reducing business rates was a priority for both small and medium-sized company, but 24% of small businesses also called fora more transpa... »

Over Half of Small Businesses Face Cashflow Problems

Late payment cited as major concern for small, established businesses despite 84% recording profits Over half (54%) of small businesses are experiencing cashflow problems, according to a new report, with late payments cited as a major reason for financial concerns by 29% of business owners. The findings, which came from a recent One Poll survey of 500 businesses, found that cashflow was one of the main challenges to established small companies. Businesses that launched between 2000 and 2007 were the most concerned about cashflow (67%), while those who set up in the 1980s were the least worried (35%). The issue of late payment affecting small business’ cashflow was brought up earlier this year when reports revealed that small and mid-sized businesses are the worse effected by late payment –... »

Small Businesses Hit by Late Paying Local Councils

Councils fail to follow prompt payment policy, with some small business working with contractors waiting over 70 days for payment New research has revealed local councils are falling behind the government’s guidelines for prompt payment of invoices. From July 2010, government departments were ordered to pay 80% of invoices within five days, however the research shows that suppliers on average wait 17.3 days to receive payment from local councils. The report, issued by Asset Based Finance Association (ABFA), revealed that some local companies even fail to pay within the 30-day period instructed by the Late Payment of Commercial Debt Act. Small and mid-sized businesses working on sub-contracted projects are the worse effected as they have to wait on the main contractor and the local council.... »

Small Businesses Getting Paid 3 Weeks Later Than Larger Counterparts

Average wait time for small businesses to receive payment rises from 64 days in 2006 to 71 days in 2014 Companies with turnovers of less than £1m wait an average of 71 days to receive payment from customers, whereas businesses with a turnover of over £500m only wait 48 days. Research by the Asset Based Finance Association (ABFA) revealed that although the government has put pressure on larger companies to sign on to the Prompt Payment Code, a voluntary register of companies committed to paying invoices in accordance with contracts; the number of days that small and mid-sized businesses wait to get paid has increased since the recession – rising from 64 days in 2006. The ABFA believe that the increase in payment times is a result of larger businesses using their power over their small busin... »

Suppliers Should name and shame Late Payers

Failure to come forward means the late payment epidemic will continue, says Forum of Private Business The Forum of Private Business is calling on all smaller suppliers to anonymously ‘name and shame’ late paying companies. Many suppliers fear that speaking out individually will lead to unwelcome reprisals and cost them business, but via its Late Payment Hall of Shame the Forum provides a way for them to identify late payers yet still protect their identities. The call follows the latest Business, Enterprise and Skills Committee hearing scrutinising the Draft Groceries Code Adjudicator Bill, which has been drawn up to establish a ‘supermarket ombudsman’ to protect suppliers. The move was recommended by the Competition Commission in 2008 following an extensive inquiry... »

Big Companies Worst Late Payment Offenders

Large firms are the worst offenders when it comes to paying small and medium-sized suppliers on time, research from payment organisation Bacs has found. In Bacs’ survey of 471 small businesses in November 2010, a third reported that they were owed money by big companies — with the average debt running at £27,000. The poll indicated that the difficult economic climate had exacerbated the problem. More than half (53%) of small firms said they had experienced late payment — up from 45% in June 2010. Government and not-for-profit organisations, however, have speeded up their processes, the findings also suggested. The number of small and medium-sized businesses experiencing late payment from the public sector nearly halved from 11% to just 6% in the last six months of 2010. Forum of Priv... »

Late Payments: Who Are the Worst Offenders

British corporates are worst offenders in £24 billion late payment debt Government and not-for-profits pay on time 33% of SMEs say corporates don’t pay on time Payments delayed by up to 52 days Late payment from public and third sectors improves 158 million man hours lost to chasing overdue bills Half Britain’s SMEs fall victim to late payment £27,000 – average amount owed  Large corporates are responsible for many of the late payments making up the massive £24 billion owed to British small and medium sized enterprises (SMEs), according to research from Bacs, the organisation behind Direct Debit and Bacs Direct Credit. But, in contrast with the commercial sector, the public and third sectors are meeting more of their bills on time – SMEs experiencing late payment on... »

Late Payments Impact on UK SMEs

New research from Bacs has revealed that over half of the UK’s small businesses do not expect any assistance from the Government when it comes to dealing with late payments. Bacs, the organisation behind the Bacs Direct Credit payment system, said that the 56% of SMEs are not expecting any help whilst the number of small businesses feeling the impact of late payments (in June 2010) has fallen by as much as 20% in 6 months. Believing that the change in fortunes is down to individual companies’ efforts to "tighten belts", Mike Hutchinson, head of marketing at Bacs says: “It’s extremely heartening to see that there are now many companies making great strides to help themselves beat the late payments cycle, by sharpening up their billing and credit control procedure... »

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