Please visit https://www.companyrescue.co.uk/ for confidential help and insolvency advice or email keiths@ksagroup.co.uk

Friday, 13 July 2012

Small businesses suffering from late payments

Britain's small and medium enterprises (SMEs) are owed a total of £35bn in late payments.  Yet only 1 in 4 of the UK's biggest companies have signed up to the prompt payments code which has been set up by the Institute of Credit Management  (ICM).  It is not as if the code is binding or anything. 

Companies can comply with the code simply by paying bills when they said they would, not seeking to change payment terms retrospectively, and by ensuring a clear system is in place to deal with any problems or complaints that do arise.

The fact that many small companies are reluctant to get heavy with their biggest customers for fear of losing them goes someway in explaining the increase in factoring whereby businesses sell on their invoices for a discount.  This can help ease cashflow problems

Companies should be vary wary of allowing even larger companies build up large lines of credit as it maybe that they themselves are in trouble and are just delaying payment.  Credit ratings of businesses are not always very up to date and don't always give piece of mind.

At KSA Group we know several good companies that collect in debts.  Please see our debt collecting page for advice on how to collect in money to ensure you survive.

No comments :

Post a Comment

Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

Web Analytics