Credit Control

'Who's Gone Bust?' report makes for sobering reading

The Centre for Retail Research has published its latest Who's Gone Bust? report, giving an insight into how retail companies have been affected by five years of economic turbulence.

Worryingly for all involved in the sector, it appears that conditions are getting worse; 2012 saw 54 companies fail, matching the previous highest total set in 2008, and with 39 brands failing by the end of August alone, 2013 is on track to be even worse.

Online streaming has Blockbuster screaming (again)

It seems only fitting that Halloween week should be the moment when Blockbuster Video - one of the UK's biggest zombie businesses - reveals that, for the second time in ten months, it is lurching back into the corporate graveyard.

Zombie businesses are those that are only just surviving, but would be unlikely or unable to continue to do so if there were any kind of substantial shock to their ongoing operations.

That pretty much sums up Blockbuster's situation, as current owners Gordon Brothers Europe have been unable to bring the company into the 21st century; former US parent company Dish still own the digital rights to the brand, and competitors like LoveFilm, Netflix and Sky have already cornered the British market for streaming films.

Experian: The bigger they are, the later they pay

The Experian Late Payment Index published on Monday shows again that the bigger a company is, the later it is likely to pay its suppliers, making for a timely reminder of the true nature of 'brand power' and its potential negative impact on small companies' cash flow.

In the third quarter of 2013, the smallest firms, with just one or two employees, paid an average of 20.62 days beyond agreed terms on overdue invoices - the smallest delay among UK companies of all sizes, and a slight improvement from 20.78 days in the previous quarter.

Prompt Payment Code fails to stop large firms making slow payments

Slow payments represent a substantial risk to small and medium-sized businesses, who must often meet the cost of materials and labour for a month or more while waiting for customers to settle invoices.

But SMB cash flows were recently given what seemed to be a much-needed shot in the arm, in the form of the Prompt Payment Code - a commitment from big firms to pay their invoices as soon as reasonably possible, rather than withholding important funds from their SMB suppliers.