It feels like we have been here before somehow. Lots of well-meaning words, a tough-sounding stance… and then what? Rinse and repeat.
The latest announcement from the government on the subject of late payment culture has come in the form of a “call for evidence” from Small Business Minister Kelly Tolhurst specifically on how to end the abuse of SMEs by large corporate clients.
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.
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%.
Wholesaler Palmer & Harvey has entered administration after failing to restructure significant debts owed to suppliers.
The Palmer & Harvey Group, the UK’s fifth-largest privately owned business and the country’s largest tobacco supplier, had been in takeover talks with Carlyle, the private equity firm.
If there is a way of defrauding your company out of money, someone, somewhere has already thought of it. In fact, they are more than likely already sitting on a hefty pile of cash from the profits they’ve made illegally.
A lot of attention is paid these days to the sophisticated digital scams carried out by international cybercrime syndicates. But that doesn’t mean anyone can afford to take their eye off the ball when it comes to less technologically advanced tactics.
Latest official figures have confirmed what most people in business already suspected - the UK economy isn’t looking in too great a shape. Growth has stalled to a virtual standstill, just 0.1%, following the worst quarterly performance in five years in the first three months of 2018.
Confidence is low amongst both businesses and consumers, with investment and household spending both down - two factors which, of course, feed one another. In addition, the early months of 2018 have witnessed a succession of big-name company failures, from high street chains like Toys R Us and Maplin, to public sector outsourcing giant Carillion.
It seems that no news is good news when it comes to tales of insolvency and corporate debt across the UK economy at the moment. Maternity and baby specialist Mothercare is the latest name to join the swelling ranks of high street retail chains teetering on the brink of collapse.
Mothercare has announced plans to close a third of its stores - a total of 50 outlets - as part of a proposed Company Voluntary Arrangement (CVA) to offset losses of £72.8m in the last financial year. If approved by creditors, the move is expected to see up to 800 jobs cut.
While economic growth continues to be sluggish at home, plenty of UK businesses are finding opportunities to do business abroad.
Latest figures show that UK exports outside the EU are enjoying a surge. They rose by an impressive 8.3 per cent in 2016 to a value of £311.6 billion, compared with exports to the EU amounting to £235.9 billion.
Small business owners want the UK government to outlaw late payments as new figures reveal that half of SMEs face financial stress due to not being paid on time.
In a new survey carried out by YouGov and reported by The Sunday Times, 61 per cent of small business owners strongly support the suggestion that the government should legislate to force companies to pay suppliers on time.
The idea put forward in the survey was to create a mandatory 45-day payment term for all invoices. Not only would such a move strengthen the hand of small suppliers and contractors when payments become late, it would also curb the practice of big businesses imposing punitive conditions, such as the notorious 120-day terms collapsed outsourcing giant Carillion insisted on.
Just 11 per cent of firms with fewer than 250 employees are opposed to the idea of legislation.
It sounds like something out of a Hollywood gangster film - a $50 million fraud, an attempt to launder the proceeds by buying a Picasso painting, and an undercover FBI agent who foiled it all.It sounds like something out of a Hollywood gangster film - a $50 million fraud, an attempt to launder the proceeds by buying a Picasso painting, and an undercover FBI agent who foiled it all.
But no, this is a real-life story. In place of gangsters, you can substitute stockbrokers whose crime was illegally fiddling share prices in a worldwide scam. After being caught red-handed, their actions led to the collapse of the firm they worked for, London-based Beaufort Securities, which was declared insolvent by the Financial Services Authority (FSA) in March.