UK SME’s owed almost £50billion in Late Payments – business news 8 July 2021.
James Salmon, Operations Director.
UK SME’s owed almost £50billion in Late Payments, productivity figures rose despite the pandemic, employers suffer worst staff shortages since the late 1990s and lots more business news.
UK SME’s owed almost £50billion in Late Payments
UK SME’s are chasing almost £50billion in overdue invoices according to know-it.
Late payments are simply unsustainable for many businesses according to the fin-tech firm as the longer payments remain due, the greater the risk to the survival of the small business.
Lynne Darcey Quigley, Founder & CEO of Know-it, commented: “It is worrying the amount of SMEs throughout the UK that are struggling because of late payments in 2021, especially with the options available for businesses to get paid on time. Offering customers an automated credit management tool method can help mitigate the risk of outstanding invoices and ensure all invoices are settled within the agreed credit terms.
Late payments are leaving small business owners unable to pay overheads on time, struggling to pay staff and reliant on outside financing in a environment where the government is shutting down various covid supports banks are concerned about their credit worthiness. .”
More than a third of small business owners reported an increase in the time customers take to pay invoices. Unfortunately, it highlights an increasing struggle when it comes to late payments. Despite the government outlining a route out of the covid lockdown, many businesses faced with late payments will struggle to survive after this pandemic.
If you are struggling with late payments, talk to us, we have been helping prompt punctual payments for over 100 years and we make late payers, pay.
UK productivity figures rose despite the pandemic
Official figures show Britain’s productivity improved in the first twelve months of the pandemic as lockdowns forced labour intensive industries to close and higher value jobs shifted online. Output per hour, a key measure of productivity, grew 0.9% in the year to March and is now 0.5% higher than at the end of 2019, the Office for National Statistics said. It was the fastest annual growth in productivity since the second quarter of 2018, excluding one COVID-19 related anomaly.
Employers suffer worst staff shortages since the late 1990s
A survey by the Recruitment and Employment Confederation and KPMG has found that the number of available workers fell in June at the fastest rate since 1997. Shortfalls are particularly acute in areas such as transport and logistics, hospitality, manufacturing, and construction, recruitment firms reported. The squeeze is said to be the result of the rush for businesses to reopen from lockdown, a sharp drop in overseas workers, due to Covid and Brexit, and 1.5m workers still on furlough. “We need action from businesses and government to reskill and upskill furloughed and prospective workers now more than ever, as the increasing skills gap in the workforce has the potential to slow the UK’s economic recovery,” said KPMG’s Claire Warnes.
Secretaries going freelance following cull
The Mail talks to recruiters about how personal assistants are starting their own businesses after the pandemic saw businesses increase their use of virtual assistants, leading to many secretaries losing their jobs. The report comes after Deloitte last week said a quarter of its secretaries could be made redundant as the firm instituted a work from home policy. Although higher-ranking managers still want their executive level PA support to be provided by a real person, many PAs are going freelance – turning into VAs – where they work for a client remotely.
House prices dip as stamp duty holiday ends
The Halifax house price index has revealed that prices fell in June for the first time since January, coinciding with the end of the full stamp duty holiday, which had removed the purchase tax on properties worth up to £500,000. Anna Clare Harper, the chief executive of property consultancy SPI Capital, said: “The tapering down of the temporary stamp duty reduction takes the pressure off demand. However, supply is still constrained, construction is getting harder and more expensive, and a mass sell-off from property owners is unlikely in the absence of significant interest rate rises.” On an annual basis, Halifax said property prices were still 8.8%, or about £21,000, higher than they were a year ago, with the strongest growth in Wales, Northern Ireland and north-west England.
Brussels plans new agency to fight money laundering
The European Commission will this month table legislation to create the Anti-Money Laundering Authority (AMLA) which will be able to impose fines totalling millions of euros on firms that breach money-laundering rules.
Persimmon
House-builder Persimmon reported an increase in revenues in its trading update ahead of its half-year results and says that pre-covid-19 build rates have been achieved across its sites with an improvement in build quality and customer service. Total revenue of £1.84bn for the six months ending 30 June 2021, is up from £1.19bn in 2020 and £1.75bn in 2019.
B&M
B&M European Value Retail reported a rise in revenue in the first quarter of the year, though the pace of growth slowed as demand normalised. For the 13 week period from 28 March to 26 June 2021, revenue grew 3.1%, though that was slower than the 27.7% seen in the period last year.
Oil
Oil Prices steadied after two days of losses amid uncertainty over supply after the collapse this week of talks among major producers which could potentially cause the current output agreement to be abandoned.
G20 finance ministers to discuss tax plan in Venice
Plans for global tax reform will be reviewed by G20 finance ministers this weekend as efforts to sign up countries resistant to the rules continue. Ireland, Hungary and Estonia have declined to sign up to the OECD deal to tax global companies at a rate of at least 15% and convincing these countries is crucial for the EU, as the adoption of a minimum tax rate would require unanimous backing from member states. Meanwhile, a number of emerging economies believe the reform does not go far enough. Argentina, a member of the G24 intergovernmental group that also includes Brazil and India, has called for a global minimum corporation tax rate of 21% or even 25% before agreeing to the OECD plan. The global tax reforms consist of plans for a minimum rate and a new rule to tax companies where they make their profits rather than simply where they are headquartered. Separately, U.S. Treasury Secretary Janet Yellen will come under pressure at the meeting in Venice to demonstrate how the Biden administration intends to convince Congress to agree to the plans
Business growth returns to financial services sector
A survey by the CBI and PwC reveals that second quarter growth in the financial services sector hit 40% – its fastest pace since June 2017 – and is expected to continue in the next quarter. The June survey also found that profitability grew at the fastest pace since December 2015, with a slightly slower rate of growth expected for the next quarter. Employment was also up, except for the banking sector, but overall, headcounts across the sub-sectors are expected to grow at a faster pace in the next quarter. “Growing business volumes across the sector is good news, especially when combined with rising profitability and employment,” said Rain Newton-Smith, CBI chief economist. “The mood music is positive,” agreed Isabelle Jenkins, head of financial services at PwC.
IoD calls for caution in plans to break Big Four dominance
The Institute of Directors (IoD) has called on the Government to approach its plans for audit and corporate governance reform with greater caution, arguing that more time is needed to assess to repercussions of the proposals. The director of policy and corporate governance at the IoD, Dr Roger Barker, said the group supports the Government’s aim to address recent failings in audit and governance, but that “as firms look to focus on recovery as we come out of the pandemic, we feel that it is right that the proposals are phased in over a longer period of time than currently envisaged.” Dr Barker continued: “We are particularly worried about the willingness and capacity of smaller challenger audit firms to take on major audits in partnership with the Big Four. This is a step into the unknown, and the concept needs to be properly tested before it is rolled out.” The IoD also urged caution over the Government’s plan to replace the Financial Reporting Council (FRC) with a new organisation, the Audit, Reporting and Governance Authority (ARGA). “Whilst we welcome the creation of ARGA,” said Dr Barker, “it must not cross the line into becoming a fully-fledged prudential regulator as established in the banking and financial sector. Finding the right balance between maintaining high standards of corporate behaviour whilst at the same time permitting longer-term market forces to operate will be a key judgement for the ARGA leadership.”
Why should you become a CPA member!
The Credit Protection Association (CPA) has been assisting thousands of UK businesses to get paid since 1914. We have seen many financial crises, this one will be particularly deadly for suppliers for some time to come.
CPA eases cash from tardy debtors – Efficiently, Effectively, Economically and Ethically. And we provide credit information so you can monitor and assess your key customers.
Unlike other credit management companies, we charge our members a fixed annual subscription irrespective of how high the debt value is!
It takes less than 17 minutes to see how you would benefit, do you have the time now?
No face-to-face meeting required – just call Peter Uwins, CPA’s National Sales Manager, on 020 8846 0000 (business hours) or email nsm@cpa.co.uk today.
When you see your money come in, you will be so glad you used CPA.
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections
Get compensated for previous late payments
Have you been paid late by business customers in the last six years?
Maybe you no longer work with them. Under legislation, you are entitled to compensation you for those late payments you have suffered.
You put up with the PAIN – now claim the GAIN!
Claim late payment compensation (LPC) from former business customers who paid you late in the last six years!
CPA (LPC) Recoveries is using our bespoke software and decades of experience to do just that for our clients
The Credit Protection Association – Prompting Punctual Payments – Ethical, Effective, Efficient, Economical collections.