Improving the nation's productivity forecasts starts by speaking out on
late payments today.
More than a quarter (27 percent) of the respondents said they are more likely to respond to a live contact regarding a
late payment than even a restructuring or reduction of their debt (8 percent).
BFS's guide, Get Paid On Time: How to Protect Your Business Against
Late Payments, outlines the three classic options for dealing with
late payments and proposes alternative solutions that allow SMBs to focus on running their business and not chasing payments owed.
Of those facing
late payments, some 16% struggle to pay their staff on time, while 28% of company directors reduce their own salaries in order to keep essential working capital inside their businesses.
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.
Late payments of invoices cause financial problems, especially for small- and medium-sized enterprises that depend on sufficient liquidity.
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.
The company's Rob Hatfield said: "Our findings show the burden of
late payments continues to be a headache for almost two fifths of businesses in the region, resulting in cash flow difficulties for the majority (68%) and for as many as 16% of firms, it is threatening their ability to trade.
The Bacs research shows that although the overall
late payment burden shouldered by UK companies has fallen, the percentage of companies affected by
late payments is virtually unchanged.
Some 53 percent of construction-related credit managers reported that
late payments has a high impact on the companyaACAOs business risks.
