Prompt Payment to be Duplicated by ‘Fair Payment’?

The announcement of the Government’s plan for a ‘fair payment’ code, to accelerate payments to sub-contractors on public construction projects, has received a cautious reception from the Institute of Credit Management (ICM) and Bacs Payment Schemes Limited (Bacs), already working in partnership to build awareness of the issue of late payments in the UK, through the Prompt Payment Code. Launched in 2008, the Prompt Payment Code is hosted and administered by the ICM, on behalf of the Government’s Department for Business Innovation and Skills (BIS). The Code is designed to encourage and promote best practice between organisations and their suppliers and a recently launched BIS guide to getting paid on time is part of the marketing programme designed to promote the Code. Philip King, chief exe... »

Late Payments Still Major Concern for UK SMEs

Research by Bacs Payment Schemes Limited (Bacs), the organisation behind Direct Debit and Bacs Direct Credit, has revealed that British SMEs are having to wait an average of 41 days longer than their original agreed payment terms, before invoices are paid. This is an increase of 9.5 days on the time SMEs were waiting, beyond agreed deadlines, in June of 2009 (31.5 days), and is contributing to considerable cash flow issues for many British SMEs. Michael Chambers, managing director of Bacs, said: “Small businesses rely on receiving payments on time so that they can maintain cash flow and ensure the business can run on a day-to-day basis.Our research highlights the continued widespread nature and real impact of the late payment problem, which was affecting 961,000 SMEs in December... »

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... »