Businesses are being urged to impose stricter cash and credit control procedures as a means of preventing late payments by a leading UK bank.
A recent survey by Yorkshire Bank has indicated that although the amount of time taken to collect overdue payments fell slightly from 52 to 49 days many firms are still worried about the detrimental affect the overdue payments could have on their business.
The survey revealed that 1 in 10 businesses believed that it may be forced to close or reduce levels of operations if customers took longer than 90 days to clear invoices.
Sharon Mappleback, North East regional invoice partner for Yorkshire Bank said:
“All businesses, particularly SMEs, depend on healthy cash flow to pay staff, buy stock and keep on top of their own invoices and bills.”
“Poor cash flow management can be one of the most critical issues that businesses face but we believe UK companies have listened to the advice to tighten up their systems and controls.”
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