Time to Act: The economic impact of poor payment practice

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... »