Business News
Three quarters of small and medium sized businesses are experiencing problems with late payments
Research by Natwest and the Royal Bank of Scotland has revealed that nearly 71% of small to medium sized businesses have experienced problems from late payments and unpaid bills in the past twelve months. Thought to amount to around £62bn in total, the Federation of Small Businesses has warned that late payment remains a ‘huge problem’ for small firms.
The FSB’s Stephen Alambritis commented: “When a small firm is paid late, it is forced to go to the bank and with the banks being a bit tetchy at the moment, it’s a difficult position. Large firms are improving their cash flow on the back of smaller suppliers.”
The FSB also claimed that an estimated 4,000 firms went bust in 2008 as a direct result of late payment. It is calling on large companies to lead by example and help build a new ‘ethical’ culture where payment is made on time.
Late payment can have a significant and dangerous impact on your cash flow – talk to Suretax Accounting today for advice on how to alleviate the burden.
