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.

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.

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.

'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.

Poor credit control and debt collection practices cost UK SMEs Billions

Britain's small to medium-sized enterprises (SMEs) contribute some 99.9% to the private sector - but are facing losses of around £3.7 billion due to poor credit control and debt collection processes.

A report from Exact, a provider of business and finance software, tallies up the costs of non-payment to UK SMEs, with some fairly alarming figures for individual examples of unpaid invoices.

Companies More Concerned With Cash Flow Than Economy

Research from the Bank of Cyprus UK reveals the extent to which British business owners are worried about their cash flow - even in the face of decent sales figures, and to a greater degree than they are concerned about the wider economy.

The findings fly in the face of recent headlines in the mainstream media, where you might be forgiven for thinking the state of the nation's finances as a whole is the biggest obstacle facing small to medium-sized businesses.

Local Authorities Urged to 'Manage Debt Collection More Responsibly'

Local authorities have been urged to manage their debt collection processes more responsibly, in order to cut down on the 1.8 million instances each year in which bailiffs are hired to recover overdue council tax payments and similar arrears.

Figures from the Money Advice Trust show substantial regional variation in the use of bailiffs by local authorities - but hint at a worryingly high prevalence of bailiffs being used to collect county court judgments nationwide.

Otium Corporation – The Danger of Off-Shore Tax Haven Companies

Otium Corporation Ltd have been making headlines for all the wrong reasons recently, particularly in a Daily Record report of how they left one aerospace contractor out of pocket by £9,000 after their payments to him simply stopped.

Stuart Jack was on a one-year contract to work at BAE Systems in Prestwick, but his payments did not come directly from BAE - instead, they went through Otium Corporation's Ltd’s service address in Batley, West Yorkshire.

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