December 23 2014
A new survey by the Institute of Directors (IoD) has found that two thirds of small and medium sized enterprises (SMEs) have suffered as a result of businesses not paying invoices on time.
Damaging knock-on effects for SMEs include delaying payments to their own suppliers with implications for their credit rating and credit terms(28%), slower business growth (13%) and being forced to change financing arrangements (10%).
Jammes Sproule, Chief Economist at the IoD , said:
“Small and medium sized businesses employ over 14 million people in the UK, making up half of the economy, so it’s very worrying that late payment is a problem for so many.
“It is simply not acceptable for late payment to be standard practice for many firms.”
Samantha White, CEO of My Credit Controllers, said:
"This report from the IoD highlights the importance of professional management of accounts receivable for smaller businesses that can be hardest hit by customers that don't pay on time."
How we can Help: