03-Oct-2012 09:21

Is Your Business Suffering Late-Payment Syndrome Too?

Nearly one million UK SMEs (small & medium-sized enterprises) are owed over £36.4 billion, according to the Bacs Payment Scheme.

Apparently the July 2012 research showed average amount owed to each SME is £36,000, and over 33% say that late bill-payments could tip them into bankruptcy.

It would appear to reflect a growing culture of delaying payments until well after the requested date with SMEs waiting an average of 43.4 days before receiving settlement on their invoices.

Sadly, a corollary of this attitude means that many smaller firms are forced to allocate time, staff and resources chasing customers for invoice payment, instead of focusing on creating new business…

Mike Hutchinson from Bacs, said: “We urge SMEs to look at taking control over their cash flow wherever they can by automating payments where possible to save valuable time and administration costs, and hopefully alleviate a little of the pressure on the business and its owner.”

Is this something affecting you & your business too?

Answers on a postcard…