How you can tackle the problem of late payment
This article appeared in First Voice magazine.
Late payment isn’t just a headache for small businesses, it can put the brakes on economic growth.
According to an FSB investigation into the impact of poor payment practices, 30 per cent of payments to small firms are late, and 38 per cent have experienced cash flow difficulties as a result. Addressing this issue could unlock around £2.5 billion, FSB estimates, and keep an additional 50,000 businesses open.
Measures are being taken to address this issue, but may take some time to bear fruit. Since April this year, larger businesses that fulfil two of the following three categories – a turnover of £36 million or more, a balance sheet of £18 million or more, or more than 250 employees – have been legally required to report on their payment practices every six months under new legislation called the Duty to Report.
Read the full article here.