Tackling Late PaymentsFebruary 23, 2015
More than three quarters of businesses suffer from late payments, according to research by Bacs.
The payment company, which is responsible for clearing millions of electronic transactions each day, reveals that 76% of British businesses are affected by late payments of more than 1 month beyond the agreed contract terms.
In companies suffering from late payments:
20% of directors have taken pay cuts
26% use their overdrafts
23% are paying their suppliers late.
Mike Hutchinson, spokesperson for Bacs, said:
“The ongoing issue of late payments means that businesses across the UK are facing some tough choices about how to use the cash available to them. They are concentrating on keeping their own businesses afloat rather than paying suppliers, and so the vicious circle continues.”
If your business is affected by the consequences of late payments please contact DonnellyBentley. We can help you manage your cashflow.