How much time do you spend each month chasing late payments?

Cashflow Protector in Late payments | No Comments

Thousands of small business jobs are being put at risk because councils are failing to pay invoices within the Government imposed 10-day target.

Despite orders from the Business Secretary, Lord Mandelson, four out of five local authorities are ignoring pleas to help firms by speeding up invoice payments and continuing to make late payment.

Small business leaders warn that thousands of jobs are being put in danger, as late payment stretch credit supplies of companies already struggling with the recession.
Critics said it provided “yet more evidence that the Government’s policies aren’t working”.

A survey of all 400 councils in England & Wales conducted by The Daily Telegraph found that more than 80 per cent of respondents admitted they were not meeting the new 10-day target and continued with late payment.

The Federation of Small Businesses, said small companies such as construction outfits, electricians and plumbers rely on £6.7bn in public sector work every year and estimated that of the 32,000 small businesses expected to go into liquidation this year, 10 per cent will do so because of late payment.
“Businesses were over the moon when local authorities were urged to pay as quickly as possible,” said FSB national chairman John Wright. “Now they are completely deflated by these worrying late payment figures.”

Emcare chairwoman Allison Crowley said in some cases care homes were being forced to call in debt collectors to recover money from local authorities.
“The effect late payments are having on these businesses is diabolical,” she said.

So if you want to avoid late payment always pre-agree payment terms.