Around 48% of Small and Medium Sized Enterprises in the United Kingdom continue to be frustrated by late payment of invoices and overdue payments on accounts a new survey has revealed.
The survey conducted by YouGov on behalf of ACI found that the practice of late payment is as prevalent as ever with Business Owners stating that it is seriously affecting the way they are running their business and restricting their ability to meet their own financial obligations.
The continued poor payment by some is leading to unpredictable cash flow for many small businesses and restricting growth.
Many Businesses are being urged to avoid accepting cheques as a form of payment as this further delays payment for creditors. With all modern forms of payment being easily and widely accessible such as BACS, online payments and debt card payments, there is no real excuse for significant delays in companies making payments to their suppliers.
Chris Spencer Operations Manager of Federal Management Debt Recovery advised “The simple fact remains that many businesses leave it as late as possible to pay invoices resulting in unstable economic conditions for their creditors, many small companies are operating on a hand to mouth basis”
“Having a rigorous credit control system in place certainly helps but even still, there will be those difficult customers who still will try and avoid paying their dues”
Debt Collection Agencies help Small Businesses recover millions of pounds every year and should always be considered as a time and cost saving solution for the late or non payment of invoices.