The Small Business Commissioner (SBC) Liz Barclay fears the UK’s late payment crisis “could get worse before it gets better.”
Speaking to the Federation of Small Business’s First Voice podcast, Ms Barclay conceded that more and more small businesses were suffering as a result of late payments “in the current climate”, and was not optimistic about the situation improving any time soon.
Read more: SBC: Late Payments “Could Get Worse Before They Get Better”
One in four freelancers are thinking about ditching self-employment because of problems getting paid on time, according to new research.
In a survey carried out by payment platform WondaPay, 24% of freelancers said they were considering looking for permanent employment because of persistent problems with late payments.
Read more: Late Payments Forcing Freelancers to Consider Their Futures
More than 400,000 small businesses in the UK are at direct risk of going under as late payments continue to rise.
Read more: 400,000 Small Businesses At Risk As Late Payments Scandal Bites
Directors found abusing company closure rules to worm their way out of paying creditors can now be disqualified from holding future positions.
In a welcome crackdown on debt avoidance, the government has extended the powers of the Insolvency Service so it can now investigate voluntary dissolution of companies. If directors are found to have shut down their business with the primary motive of wiping off debts, the Insolvency Service can now bring misconduct charges against them.
As well as being disqualified for up to 15 years, directors could be ordered to pay compensation to unpaid creditors.
Read more: Rogue Directors Face Disqualification for Dissolving Companies to Avoid Debts
Fed up of clients who refuse to stick to agreed payment terms? Feel like you're being held to ransom by large customers who insist on making suppliers wait two or three months before they pay for goods or services received?
The government’s Small Business Commissioner (SBC) wants to hear from you. The Commissioner’s office, which is part of the Department for Business, Energy and Industrial Strategy (BEIS), is holding a consultation on SME’s experiences of late payments that closes on 15th December.
As the financial fallout of the COVID-19 pandemic continues to sweep through the economy, latest figures show that SMEs have been hit by a 20% surge in late payments over the past 12 months.
According to research from cloud-based credit management platform Know-It, the total value of overdue invoices UK-based small businesses are now waiting on has leapt to £61 billion, a sharp rise from the no less eye watering figure of £50bn reported in 2020.
Read more: COVID Triggers 20% Spike in Overdue Payments Owed to SMEs
In our last blog, we highlighted some of the dangers businesses face from fraudulent operators posing as legit companies, but whose real intention is just to rip you off.
So what can you do to avoid these risks? The answer is all about due diligence and knowing exactly who you are dealing with before you make a payment or sign a contract. Nowadays, formal ‘Know Your Customer’ or KYC background check services are available as byproducts of strict anti-fraud regulations in the financial industry.
But as useful as such services are, there are simple things every business can do directly for themselves to check out the credentials of any potential new client or supplier. Here are three simple steps to take to avoid being ripped off.
Read more: How Can You Ensure That You’re Dealing With A Legitimate Company?
With incidents of fraud on the rise over the course of the COVID-19 pandemic, we’re all having to be even more vigilant in our dealings, especially online.
But while the risks of phishing scams and lax digital security are well known, companies are still very much at risk from a more traditional approach to con artistry - doing business with cowboy operators whose primary aim is to rip you off.
Read more: Legit or Leg It? The Dangers of Dealing With Less Than Reputable Operators
