Late payments in the UK
Late payments are the bane of any business. In Britain this is coming to the fore because Business and Enterprise Minister, Michael Fallon, has launched a campaign calling for large companies to improve the practice of tardy payments to small suppliers. This has also been picked up by the Telegraph who are running a campaign in conjunction with the Minister to encourage on-time payments.
Late payments to SMEs threaten their existence as cash-flow is an imperative to their survival. Small firms find themselves at the mercy of large companies who are increasing the time-frame in which they pay suppliers for work that is already completed. It is estimated by the Telegraph that £36.5 billion is due in late payments.
Latest research from the organisation reveals that smaller suppliers wait on average 41 days longer for payment than their contract stipulates. Many have to wait up to 180 days to be paid for services they provide to larger companies and the minister revealed that he had been told of one well-known company that had a payment process approaching 200 days. (Telegraph)