FLAGGING UP LATE PAYERS
As reported in the Hampshire Business of January 2019 there are variances in how quickly businesses pay their bills depending on where they are located. To be specific:-
“Almost a third of invoices issued by small businesses in the south east are not paid within the recommended time period of 30 days.
New research undertaken by Lloyds Bank in partnership with the UK Small Business Commissioner states 32 per cent of invoices are paid late in the region with the average period between issue and receipt being 38 days.
Legislation imposed in April 2017 requires all businesses to publish their payment practices.
Sample data from 7,010 companies revealed that:
- 65 per cent of large businesses have an average bill payment time of more than 30 days.
- More than a fifth (22 per cent) report an average bill payment time of 50 days and above.
- London companies are the most prompt at paying bills within 34 days. Those in the South West were seen to pay 35 days and after.
- Yorkshire and Humberside firms have the worst record with payments taking 43 days, followed by companies in Northern Ireland and East Midlands with an average of 41 days.
- Only 14 per cent of companies analysed reported payment terms of 19 days or under.
The effect of late payment on small firms not only impedes business growth but can be devastating.”
The Late Payment Compensation division of CPA enforces Late Payment Legislation, claiming interest currently at 8.5% and additionally provides Members with three tiers of compensation- £40 for each invoice under £1000, £70 for those under £10,000 or £100 for those over £10,000, depending on the amount of each individual invoice.
Moreover, CPA will calculate exactly what each and every client is owed going back 6 years for every invoice that was paid late. This can amount to serious money indeed, sometimes hundreds of thousands of pounds for a client.
Yours sincerely
David Baber
Managing Director
17/01/2019
visit our late compensation page
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