non-paying customers

Non-Paying Customers Leave 1.4 Million Businesses Out of Pocket

Non-Paying Customers Leave 1.4 Million Businesses Out of Pocket

1.4 million UK small businesses are suffering from bad debt as customers fail to pay them money they are owed, according to a report from Bibby Financial Services. A survey of 1,000 small enterprises, taken before the Brexit vote, revealed that 27% of business owners have written off owed invoices in the past year with the average firm losing £11,829. Companies in the transport and construction sectors are most likely to be kept waiting for payment, with industry culture regarding the nature of billing and lengthy payment terms suggested as possible reasons for this. David Postings, BFS Global chief executive, said: “Bad debt is a chronic problem for small businesses and can lead to staff cuts, delayed investment plans and, at worst, insolvency. “Following the UK’s vote to leave the EU the... »

Late Paying Customers

Small firms under pressure from late-paying customers

Two–thirds of small businesses are owed more by their customers than they owe to suppliers, according to the University of Nottingham Institute for Enterprise and Innovation (UNIEI). Research from UNIEI revealed that non–paying customers and tighter lending conditions imposed by the banks have created serious cashflow problems for small firms – and the situation is getting worse. The survey also found 77% of small businesses believed that the balance between business credit and debt worsened between July and September last year. Association of Chartered Certified Accountants (ACCA) SME policy adviser Manos Schizas said: “Much of the trade credit issue has to do with a relatively small number of large customers who are late payers, and that is being exacerbated by th... »