Knowledge Centre
24th September 2010
More than half of British SMEs (56%) are not expecting financial backing from the Government to help tackle the late payments issue.
target="_blank"New research by Bacs shows that UK small businesses are waiting nearly 40 days longer than their agreed payment terms before invoices are settled. But there is a 20% drop in the number of companies feeling the impact of these shortfalls.
However, Mike Hutchinson, head of marketing at the organisation, believes this is largely due to the individual companies' efforts: "It's extremely heartening to see that there are now many companies making great strides to help themselves beat the late payments cycle, by sharpening up their billing and credit control procedures."
The study shows 769,000 small businesses are still affected and that large companies are the main late payments culprits. Thirty-seven per cent of SMEs have cited them as the worst offenders. Sole traders were also named and shamed as 17% of respondents pointed the finger, with the same number (17%) blaming fellow SMEs.
The Government also came off badly, despite pledging in the 2010 Budget that their departments will pay 80% of invoices within five days rather than the usual 30. Six per cent of small companies suggested this challenge will be a difficult or unrealistic one to meet.
The total amount of money owed to these companies is now nearly a third more (28%) than it was six months ago (£25,000 December 2009 compared with £32,000 in June 2010), with a massive £24.6 billion in total now owed to businesses across Britain.
Finance experts have suggested SME's move away from cheques as a payment method and adopt automated ways of paying bills. In terms of streamlining processes and helping cash flow, companies can now take advantage of systems in place to help combat late payments.
With cheque clearing facilities due to be phased out by 2018, there is also a sense that now could be a good time to start phasing the new systems in.
IMAGE: Martin Keene/PA Wire/Press Association Images
Whatever the outlook, boost your business prospects with MORE TH>N insurance. Ask us for a cheap shop insurance quote today, or find out about our great value van insurance.
SMEs doubt Government will assist with late payments
target="_blank"New research by Bacs shows that UK small businesses are waiting nearly 40 days longer than their agreed payment terms before invoices are settled. But there is a 20% drop in the number of companies feeling the impact of these shortfalls.
However, Mike Hutchinson, head of marketing at the organisation, believes this is largely due to the individual companies' efforts: "It's extremely heartening to see that there are now many companies making great strides to help themselves beat the late payments cycle, by sharpening up their billing and credit control procedures."
The study shows 769,000 small businesses are still affected and that large companies are the main late payments culprits. Thirty-seven per cent of SMEs have cited them as the worst offenders. Sole traders were also named and shamed as 17% of respondents pointed the finger, with the same number (17%) blaming fellow SMEs.
The Government also came off badly, despite pledging in the 2010 Budget that their departments will pay 80% of invoices within five days rather than the usual 30. Six per cent of small companies suggested this challenge will be a difficult or unrealistic one to meet.
The total amount of money owed to these companies is now nearly a third more (28%) than it was six months ago (£25,000 December 2009 compared with £32,000 in June 2010), with a massive £24.6 billion in total now owed to businesses across Britain.
Finance experts have suggested SME's move away from cheques as a payment method and adopt automated ways of paying bills. In terms of streamlining processes and helping cash flow, companies can now take advantage of systems in place to help combat late payments.
With cheque clearing facilities due to be phased out by 2018, there is also a sense that now could be a good time to start phasing the new systems in.
IMAGE: Martin Keene/PA Wire/Press Association Images
Whatever the outlook, boost your business prospects with MORE TH>N insurance. Ask us for a cheap shop insurance quote today, or find out about our great value van insurance.
Post to:
What are these?
No comments have been published yet.
- 20th January 2011 Unemployment figures hit 2.5 million
- 14th January 2011 Government 'must introduce fuel duty stabiliser'
- 7th January 2011 FSB call 'to reverse VAT rise'
Site by Acknowledgement