The payment practices of the UK's biggest companies have been under scrutiny for a while now, with voluntary efforts such as the Prompt Payment Code attracting criticism for being 'toothless' in terms of enforcement action.
Meanwhile though, nobody really wants to see a situation where it is mandatory to take late payers to court, or to enforce penalties and interest - after all, sometimes you might simply want to extend the deadline as a gesture of good faith to a valued customer.
When it comes to avoiding bad debt the old adage "prevention is better than cure" is a very useful rule to follow. As we tell any business owner that will listen, it is absolutely imperative that before you extend a customer credit you answer the following questions:
The UK's small businesses are facing even longer overdue invoices than at the worst point of the recession, according to figures from ABFA.
In a report published earlier this month, the Asset Based Finance Association revealed that, in 2009 when the recession peaked, firms with turnover of less than £1 million per year were waiting on average 61 days for invoices to be paid.
Hardly a month goes by without a new government or industry scheme aimed at preventing late payment - since the EU Late Payment Directive was introduced, we've seen the voluntary Prompt Payment Code, proposals to name and shame poor performers on a public database, the Supply Chain Finance Scheme to raise funds against outstanding invoices, and several suggestions of new conciliation schemes.
Formula 1 tyre supplier Pirelli took a hard line in Hungary by invoking a prompt payment policy that left Lotus with no tyres as the first practice session approached on the Friday.
Payments are due on a quarterly basis and, according to reports in the Telegraph and other national newspapers, Lotus owed about £350,000 for three months' worth of wheels.
A whole raft of new ideas have been announced in the past few months, from a 'conciliation service' for small businesses that are owed money, to forcing big brands to publicise their payment terms, to trade associations going to war (figuratively speaking) on behalf of their members.
It might all feel a little bit like Groundhog Day - again. Publicising payment terms is already a principle of the totally voluntary and largely toothless Prompt Payment Code, we already have mediation, and unless you're actually a member of a very active and involved trade association, that part's likely to leave you feeling cold.
The smallest firms in the UK are being paid late, in some cases by over a year, due to a lack of urgency and a sense of awkwardness about chasing clients for payment, new figures suggest.
A survey carried out by online accounts software provider FreeAgent revealed that just one in seven micro-businesses that issue invoices have never had to deal with an instance of late payment.
Greece's government has imposed capital controls and closed banks until after a July 5 referendum on a deal with European creditors.
The following information is provided for any company concerned about customers based in Greece and the impact the capital controls will have on their cashflow in the short term. This guide covers basic credit control information, if you have customers already behind on payment arrangements allowing further credit is at best ill-advised.
As a debt recovery company tasked with chasing down overdue payments, it makes sense for us to be a signatory of the Prompt Payment Code, the voluntary code of conduct for all businesses when it comes to paying suppliers.
We recently signed up to the PPC and, as part of the process, were asked to provide the names and contact details of 'referees' - satisfied former suppliers who could vouch for us as regular prompt payers - and these were, in turn, contacted by the Chartered Institute of Credit Management, who act as administrators of the PPC.
Two directors of Lancashire-based Worldwide Sports Investments Limited have been disqaulified following an investigation by the Official Receiver’s Public Interest Unit. The directors operated a high pressure sales scam purporting to offer investments in a golf course and hotel development in Portugal.
44 year old director Mr Christopher Smullen received a disqualification order on the 26th May 2015 banning him from managing, promoting or being a director of a limited company for 13 years from the 16th of June 2015.