late payment of invoices

Small Businesses Move Faster on Late Payers

Small firms are putting the pressure on and chasing overdue invoices more quickly than they were a year ago, new research has revealed. According to debt-recovery law firm Lovetts, small businesses are issuing Letters Before Action (LBA) 33 days sooner than during the same period in 2010. LBAs are typically sent out in an attempt to secure payment before legal action is started to recover a debt. The law firm said that the number of claims issued to recover payment had risen by 9 per cent, while the total value of claims had also increased by a quarter in the past year. Results were based on analysis of LBAs issued and claims made on behalf of Lovetts’ clients. Charles Wilson, Lovetts’ chairman and managing director, said the findings echoed business behaviour last seen just before the 200... »

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... »

Government guilty in late payment of invoices

The Government has failed to deliver on its pledge to pay small businesses within ten days of invoicing, according to a new survey. Last autumn, Prime Minister Gordon Brown pledged in Parliament that Whitehall would become one of the best customers small businesses could have by cutting its 30-day payment time to ten days. Brown said the move would be “a small price for greatly increasing cashflow associated with £8 billion of contracts for SMEs”. However, a survey carried out by credit reference agency Graydon UK in the first two weeks of March 2009, revealed that just 1% of small businesses supplying government departments were paid within ten days. Instead it found that: 39% of SMEs were paid within 10 to 30 days 53% within 30 to 60 days 7% had to wait more than 60 day... »