CPA Reassures Business Owners Fearing Late Payment Trend
9th January 2018.
The culture of late payment is not going away and it continues to undermine the growth and value of the country’s SMEs. While proudly called the ‘backbone of the economy’, not enough is done to help them. The majority of our small business members at the Credit Protection Association have reached out to us to achieve repayment on high numbers of unpaid invoices.
Recent findings from the business finance company, MarketInvoice, have revealed that 62 percent of invoices issued by UK SMEs in 2017 were paid late, up from 60 percent in 2016.
Three in ten invoices paid late took longer than two weeks from the agreed date to settle, with some taking almost six months to be paid.
According to the research, sectors that frequently pay late included the food & beverage industry and energy businesses. Meanwhile, those who took the longest to pay included transport businesses, utilities and those in media sectors.
Businesses in Northern Ireland were found to be the worst late payers with 93 percent of invoices paid late. East Anglia and East Midlands came in second and third respectively. Scotland was the best of the worst, where half of invoices were settled late.
The Government recently introduced their Duty To Report measure which requires large businesses to report on invoice payments twice a year. MarketInvoice spokesman Bilal Mahmood believes this will help prevent late payment to small businesses, as well as encourage positive business.
The staff here at CPA understand, and bemoan, the continued issue of late payment. Late or slow payers can prove particularly damaging to small businesses where workers and turnover are not substantial.
However, there is a way out.
The worse thing that we have seen our Members do is ignore it. Letting that pile of invoices on your desk get any higher, wont do you, or your stress levels, any good.
We have dealt with all manners of debt, whether its years old, days old or with little knowledge of the customer!
We understand that many businesses prefer to keep credit control within their own company, but this is our job, and we are only too eager to offer a helping hand!
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
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