Displaying items by tag: Late Payment

The new head of the Federation of Small Businesses (FSB) has told the government the UK’s late payment culture is hurting the ability of SMEs to deal with spiralling costs.

In an audience at Number 10 Downing Street, Martin McTague, who was appointed chair of the Federation in March, spelled out his concerns about the economic challenges facing the UK’s five million small businesses.

High on the list was the on-going issue of late payments, which McTague said was holding back post-COVID recovery in the SME sector and causing unnecessary financial distress as inflation hit a 40 year high

Published in Credit Control

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.

Published in Credit Control

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.

Published in Credit Control

More than 400,000 small businesses in the UK are at direct risk of going under as late payments continue to rise.

Published in Credit Control

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.

Published in Credit Control

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.

Published in Credit Control

At Safe Collections, we’ve been banging the drum on the UK’s late payment culture for years, making the case over and over again that without the stick of meaningful enforcement, there is little incentive for large companies to stop holding smaller suppliers over a barrel when it comes to payments.

Finally, it seems like the message may have gotten through to the government, although on account of the time it has taken, we can only conclude they are listening reluctantly.

Published in Credit Control

It is not likely to be news to any business owner that the COVID-19 pandemic has seen late payments soar.

The fallout from the crisis has seen revenues across the economy plummet, with the Office for National Statistics (ONS) reporting a 20.4% slump in GDP in Q2 of this year while the country was in full lockdown.

Published in Credit Control

Creative agencies and freelancers are being stung by an average 27-day wait for settlement of overdue invoices, according to a new report.

The findings come from a survey of over 5000 invoices issued by organisations such as IT developers, digital marketing consultancies, design specialists, film, TV and photography contractors and more. The study, carried out by business lender MarketFinance, found that clients were routinely paying service providers and suppliers late despite already insisting on lengthy payment terms that averaged out at 45 days.

Published in Credit Control

A new year, a new decade even - but still the damning picture of just how much damage the UK’s late payment culture is doing to the small business economy continues to develop.

The latest depressing statistics, courtesy of digital business banking platform Tide, show that UK SMEs are on average spending a staggering one and a half hours every day chasing unpaid invoices. When you extrapolate that across the economy, that translates into 900,000 working hours being lost every single day.

Published in Credit Control
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