Owners and directors of small and medium sized businesses are still being caused problems, including stress-related health issues, through the late payment of invoices despite the economic upturn, a survey by the International Association of Book-keepers (IAB) has found.
The IAB, the leading professional body for bookkeepers, surveyed more than 200 of its members, many of whom run their own businesses and count among their clients SMEs from across a range of sectors and from around the UK.
“Bookkeepers can often be closer to the day-to-day financial affairs of small businesses than the owners and directors,” said Malcolm Trotter, Chief Executive of the IAB. “As such, they are perfectly placed to observe and comment on the impact of late payment on SMEs.”
More than half said they had noticed late payments causing cash flow problems for their clients in the past year.
If you have experienced issues with regard to late payments we can help you. Please contact us today for more information and to read the article in full please see www.bmmagazine.co.uk
Despite positive news on the UK economy, the continuing culture of late payment remains a concern for many small businesses according to the latest research from the national small business group, the Forum of Private Business.
In the organisation’s latest banking and finance survey, 23 per cent of members reported an increase in late payment over the past year compared with just 3 per cent who reported a decrease. 29 per cent have also seen an increase in the average number of days beyond the deadline that a payment is made late whilst 8% reported a decrease, and 19 per cent have seen an increase in both elements of late payment.
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1: We offer a Debt Collection Service with a no win, no fee contract
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Almost half of UK businesses are putting off paying their suppliers as a direct consequence of being paid late themselves, demonstrating the devastating impact late payment is having throughout the supply chain.
This consequence of late payment was second only to the inevitable need to spend more time chasing customers for payment. In total, 88 per cent were adversely affected by late payment last year, with businesses commonly having to increase borrowing, pay HM Revenue & Customs later (19 per cent) and even turn away new business as a result.
To compound matters further, 27 per cent revealed the most common late payment excuse they received was that customers were waiting for their own customers to pay.
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Its been recently publicised by the Compliancy Services that 60% of the population of the UK now own a smartphone and 20% own tablets.
Many individuals purchase these items via mobile phone contracts that are on average 24 months long and almost impossible to get out from unless you buy out of them.
Will this new use of technology impact on future debt?
This is our first blog post by our Robert Gething, our website designer from Robert Gething Ltd.