concern

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... »

Energy Suppliers Force Small Firms to Pay Bills Upfront

Energy Suppliers Force Small Firms to Pay Bills Upfront

Small firms are being forced to pay their energy bills months in advance, the Federation of Small Businesses (FSB) has claimed, as suppliers seek to protect themselves from the increasing number of businesses becoming insolvent.  According to FSB spokesman Stephen Alambritis, an estimated 250,000 small businesses have been contacted by their energy company in recent months and asked to pay an element of their bills upfront. “Some firms have had to pay their bills seven months in advance,” he said. Alambritis said that EDF, Scottish Power, E.ON and British Gas are among those suppliers which have recently tightened their payment arrangements. “The energy companies have been concerned by the high level of bankruptcies, but asking for money upfront puts businesses in an... »