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We'd like you to be able to answer this question for yourself so we've compiled a summary of
the alternatives.
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Owed money by a company and have all the information available? This form is a quick and easy way to get started on the road to recovery.
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You may have experienced this trend first hand. If so, you aren't alone and are probably concerned about the effect this ongoing situation is likely to have.
Research
The time it now takes the average debtor to pay has risen to 60.8 days
These latest figures from Experian demonstrate the trend for wilful delay of payment is getting worse. As a country we have now reached the shameful point where most bills take twice as long to settle as the agreed payment terms.
Unsurprisingly, small businesses are being hit particularly hard.
56% of all companies with less than 20 employees are owed money beyond their payment terms
The above statistic was uncovered recently by research company Vanson Bourne, demonstrating that it is the companies who can least afford it that are being made to foot the bill.
These figures are a continuation of a trend that began in 2004 and according to Experian show no signs of decreasing. There is a widely held opinion that the UK business community is operating within a culture of late payment. Many companies see withholding payment on valid invoices as a means to finance their own businesses at the expense of the supplier. Is it fair? No. Does it happen? Certainly.
The implications are obvious:
750 companies are going bust every day
More business are feeling the pressure and the Fortis Commercial Finance “Late Payment Report” reflects this with the following findings:
32% of SME’s believe delayed payment will lead to reduced business growth
10% actually believe they will have to downsize their business
11% project staff reductions
The Fortis report went on to state that the worse case scenario is also very much on people’s minds.
10% of medium sized companies fear business failure as a result of late payment. Unsurprisingly 35% of respondents believe the current and projected situation will result in a significant increase in management stress levels.
Cash flow is becoming ever more important and it’s vital you are equipped to manage yours. Financial institutions now offer an array of options to aid companies. There is a lot of choice, but not much clarity on what the benefits and pit falls are of each option, making an informed decision on what is best for your company difficult. In order to help with this process we have summarised the main alternatives in our competitor services section.
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