Firms Failing As Statutory Payment Terms Are Ignored

New figures exposing the extent of the UK’s late payment culture have revealed that more than 100,000 companies waited an average of 57 days for payment from clients last year - almost double the government’s statutory payment terms.

The research, carried out by insolvency specialist Begbies Traynor, found that one in 10 of these contractors and suppliers went out of business - 1000 firms in total.

Flybmi Collapse Sounds Alarm Bells for Airline Suppliers

Another week, another tale of company administration, job losses and suppliers facing an anxious wait on whether they’ll ever get anything back on unpaid invoices.

The collapse of Flybmi, the small regional airline based at East Midlands Airport, has resulted in the ‘majority’ of the company’s 376 staff being laid off with immediate effect. Following Monarch last year, it is the second UK airline to go under in less than 12 months.

The Pool Enters Administration As Freelancers Are Left Unpaid

Sadly, after reporting in our last blog on the issues digital magazine The Pool was having with paying freelance contributors, its financial issues have come to a head. Talks to save the ailing publication with an injection of new cash apparently made no headway and it has entered administration.

As well as meaning 20-plus members of staff now face redundancy, the development leaves freelancers who are still awaiting payment on long overdue invoices in an even more precarious position.

Payment Problems at The Pool Underline Freelancer Risks

Lifestyle magazine The Pool has suspended all freelancer commissions after it emerged it was facing a sizeable backlog of late payments owed to contributors as well as to staff.

New editor Cate Sevilla took the decision to halt all new work requests for freelance journalists and photographers, including from regular columnists, after being inundated with queries over unpaid invoices since she took the job in September.

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