Cashflow is the very lifeblood of your business, if it runs low a business will struggle to continue. If it runs out it will cause a corporate “heart attack” and kill even a profitable business stone dead.
So what can you do to minimise the impact on your business when you are faced with a short term cashflow problem?
Read more: When Cash Runs Short - ICM & BIS Managing Cashflow Series Part Eight
When late payment goes beyond the limits of amicable pursuit, and it becomes apparent that the funds will never be willingly forthcoming, the remaining option is to go to court, in order to force the debtor to pay.
Depending on how much you are owed, you may be able to do this in small claims court, or you might have to launch more formal legal proceedings, which are likely to prove more expensive.
The so-called 'Late Payment Directive', officially named Directive 2011/7/EU on Combating Late Payment in Commercial Transactions, is due to come into effect in less than a month's time, on March 16th 2013.
With just 24 days to go until that time, the Department for Business, Innovation and Skills has revealed the results of its recent consultation on the Directive, along with the finalised set of regulations that will be introduced in March.
Read more: 'Late Payment Directive' consultation results published
Small to medium-sized enterprises (SMEs) are struggling to tackle late payments from clients who, in the worst instances, miss three or more invoices per year.
Almost half (47%) of SMEs surveyed by Barclays said that their least reliable customers fail to pay on time at least three times each year.
Read more: SMEs Hit by 'Repeat Offending' Late Payment Three or More Times a Year
