Small business minister Kelly Tolhurst said: "The vast majority of businesses pay their bills on time, with the amount owed in
late payments halved over the last five years.
The effects of
late payments to contractors and subcontractors in Quebec have led some in Montreal to stop bidding on public projects, according to the Montreal Gazette.
Another survey by accountancy specialists Xero questioning 250,000 SMEs concluded that the majority of small firms operated in the red, with
late payments being one of the key factors contributing to cashflow problems.
Late payments can be a headache for small businesses iacona
A recent survey shows that 94 percent of American businesses experience
late payment by their customers and nearly half of all invoices were paid past the due date.* For SMBs who withstand millions of dollars in outstanding invoices, waiting to get paid makes it hard to cover costs and keep their businesses moving.
The SBP imposed fine on National Oil Refinery over
late payments to Saudi Oil Company.
Some entrepreneurs have even told us they are ashamed to chase
late payments and so don't.
ALMOST a quarter of small and medium-sized businesses in Yorkshire face a potential financial crisis due to
late payment of invoices, according to research.
Previous Sage research on
late payments has revealed that [pounds sterling]55bn is owed in unpaid invoices in the UK, more than double the number estimated by Government.
But there are actions business owners can take to tackle the problem head on: Invoice clearly and on time - it can mean the difference between being paid promptly and the invoice being 'lost in the system'; Make 30 days your mantra - standardised by the European
Late Payment Directive; Take electronic payments rather than cheques - funds are cleared and available to use as soon as they are paid; Run a credit check - if the company you are dealing with is experiencing financial problems it is more likely to delay paying; Be proactive - politely, but firmly, pursue
late payments by email, in writing and with a call.
A further 68% of those negatively affected by
late payments say the situation hasn't improved in the last year.
