A new report from Companies House has revealed how some suppliers are still waiting over 42 days on average for invoices to be paid. This means that many small businesses are being threatened by the bad payment behaviour of its customers, and many more are not seeing a way out.
With the government unwilling to punish the bad payers and more friendly initiatives proving ineffective, dissolving the late payment culture becomes the responsibility of the businesses themselves. At the Credit Protection Association, our debt recovery credit management products have aided many business owners who have suffered at the hands of late and bad payers. While many firms insist upon internal credit control, approaching a third-party can make all the difference, and bring forward a position resolution.
Conrad Ford, CEO of Funding Options, said: “A single late payment can be an issue even for larger and more successful firms, and worsening delays could create more insolvencies.
“Carillion’s collapse sent shockwaves through the industry, affecting smaller suppliers who will now never get paid what they are owed.
“It is crucial that construction companies understand all the options available to them for the funding they require to minimise the impact of late payments.
“There is a variety of alternative lending available to small businesses seeking funding, such as invoice finance, asset finance, crowdfunding and peer-to-peer lending.