Duty to Report Failing to Tackle Self-Interest in Late Payments

Just under half of large businesses admit to paying suppliers late to protect their own cash flow, according to a new report.

In the UK Business Payments Barometer 2018 survey carried out by Bottomline, 44% of businesses with between 250 and 10,000 employees said they pay invoices late in order to protect liquidity or prioritise other payments.

This comes just a year after the government introduced its Duty to Report (DTR) regulation requiring qualifying large businesses to publish information on payment practices, including average time taken to settle invoices.

Applicable to any company with more than 250 employees, £36m turnover or £18m on the balance sheet, the government hoped DTR would help to tackle late payment culture by bringing the worst excesses out into the open. If these latest survey figures are taken as a gauge, it is yet to work.

Northern Cities Come Out Top On Prompt Payment

The government’s much-vaunted ‘Northern Powerhouse’ may have turned out to be little more than a catchy phrase scribbled down on the back of a Chancellor’s fag packet. But at least contractors and small suppliers operating in the North of England’s biggest cities are more likely than most to get paid on time.

In a survey carried out by FreeAgent, small traders in Manchester reported the lowest rate of late payments nationwide. According to the findings, 86% of invoices issued by freelancers and microbusinesses in the city are paid by the due date - which compares very favourably to the national average of 52%.

Insolvency Domino Effect Strikes Down One in Four UK Companies

More than a quarter of UK businesses have suffered negative consequences from another company becoming insolvent in the past six months.

A survey carried out by R3 revealed that one in 10 businesses have suffered a ‘very negative’ impact from a customer or supplier becoming insolvent since the start of 2018, while another 16% reported a ‘somewhat negative’ effect.

The figures come after a sharp spike in the number of companies being declared insolvent in the first quarter of this year. Led by the high profile collapses of Carillion, Toys R Us and Maplin, the number of insolvency cases rose an alarming 13% from the previous quarter.

Late Payments to SMEs Soar By £1 BILLION in Six Months

The total value of overdue payments owed to UK small businesses has rocketed by an astonishing £1bn in just six months, according to a new report.

The survey by small business financiers Liberis found that the average SME was waiting on £11,000 in outstanding payments. When extrapolated across the country’s 5.5 million small businesses, that generates a total figure of £14.9bn - up by a billion on findings from just six months ago.

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