small business late payments

Late Payments Causing Small Businesses To Miss Out On £250bn In Liquid Cashflow

Late Payments Causing Small Businesses To Miss Out On £250bn In Liquid Cashflow

UK small businesses are missing out on £250bn worth of liquid cashflow due to late payments, according to a new report by Siemens Financial Services. It’s revealed that an average small to medium-sized enterprise spends 130 hours a year chasing outstanding invoices and overdue payments, equating to a cost of £10.8bn per year. When this figure is combined with the average value of unpaid invoices, it equates to £250bn. Small firms appear to suffer from this ‘late payment epidemic’ disproportionately more than larger enterprises, and its suggested that this is because they tend to be positioned towards the end of the supply chain. Invoice Finance and Your Small Business Indeed, firms with an annual turnover of under £1m wait on average 72 days for invoices to be paid, compared to just 53-54 ... »

A Bridge Too Tsar? Business Owners Skeptical Late Payments Minister Can Solve Cashflow Crisis

A Bridge Too Tsar? Business Owners Skeptical Late Payments Minister Can Solve Cashflow Crisis

UK business owners don’t believe the impending arrival of a late payment tsar will do anything to help ensure small firms and freelancers are paid on time, according to a report by FreeAgent. The survey revealed that just 2% of UK freelancers and micro-businesses believe the forthcoming commissioner will have any impact whatsoever, with 57% of respondents not even aware the position was due to be filled. The is currently a ‘cashflow crisis’ in the small enterprise space, with just 51% of all invoices paid on time in 2015. Initially announced in July 2015, by then business minister Anna Soubry, its envisioned the tsar will help tackle the payment “imbalance” between small and larger firms by providing advice and support on how to avoid and resolve disputes, offering access to mediation serv... »

Government Policies Still Leaving Business Owners Waiting To Be Paid

Government Policies Still Leaving Business Owners Waiting To Be Paid

Five years’ worth of government policies have done nothing to help tackle the issues of late payments, according to The Federation of Small Businesses (FSB). Their report, Time to Act: The economic impact of poor payment practice, revealed that 30% of all small business payments are now late – compared to just 28% in 2011. 37% of all enterprises have run into cashflow difficulties at one stage in their life time, with 30% forced to use an overdraft – while 20% admit not receiving money owed on time has affected their profits. More worryingly for business owners, late payments can almost act as a death knell. It’s estimated 50,000 ‘business deaths’ could have been avoided in 2014, if payments had been made on time and as promised – adding an extra £2.5bn to the UK economy. Mike Cherry... »

Late Payments Minister To Finally Arrive In 2017

Late Payments Minister To Finally Arrive In 2017

UK small businesses are going to receive a Tsar to help them tackle the issue of late payments, but not until 2017, it has been revealed. Government ministers have launched a consultation process with the aim to appoint a small business commissioner to tackle the issue of overdue payments. Initially announced way back in July 2015, by then business minister Anna Soubry, there has yet to be an official appointment with the position remaining unfilled. In the original announcement, Soubry said the position would tackle the power “imbalance” between small and large UK businesses, and said the commissioner would provide advice and support on how to avoid and resolve disputes, offer access to mediation service and investigate complaints over unfair business practices. The department... »

6 Tips for Credit Management

6 Tips for Credit Management

You sell a product or provide a service to a customer, invoice them and hope to receive the funds in a set period of time, say 30, 60 or even 90 days. That’s just how business works nowadays. In principle, though this piles up your sales ledger with unpaid invoices, you do not actually receive any income at the point of sale. With the slow economy having hit everyone’s pockets, the frustrating truth is that many customers would rather delay payment unless continually reminded. It is important for business owners to be on the chase in a bid to recover their funds. Afterall, you kept to your side of the agreement so your customers should stick to theirs and complete payment for their invoices. Chasing debts is a disciplined approach to seeing the cash continuing to flow into the bank. ... »

Small Business Late Payments Continue

More than 80 per cent of small businesses are still paid late by their customers, waiting more than 30 days before they receive their fee, new research has found. The survey of over 300 small firms by professional services firm RSM Tenon also found that one in six business owners have waited for more than 60 days to be paid in the last 12 months. Legally, if businesses don’t agree a credit period with their customers, the law sets a default period of 30 days. After this period businesses can charge late payment interest. “Instances of late payment are increasing.” said Forum of Private Business (FPB) media manager, Phil McCabe. “Currently, something like £24 billion in invoice payment is outstanding just to small firms.” McCabe added that the main culprits are often... »