New figures exposing the extent of the UK’s late payment culture have revealed that more than 100,000 companies waited an average of 57 days for payment from clients last year - almost double the government’s statutory payment terms.
The research, carried out by insolvency specialist Begbies Traynor, found that one in 10 of these contractors and suppliers went out of business - 1000 firms in total.
So you have just won a new client. You aced the bidding process, the initial project meetings went well and the money is good. You can’t wait to get started, when out of the blue you get the following note from their finance people:
“Please be advised that our payment terms are 60 days from date of invoice. This will override any payment terms stated on your invoice. Payments will be processed accordingly on the final Friday of each month.”
What do you do?