High Increase in Late Payments for SMEs
1st October 2019
Late Payments for SMEs – Amongst Small and Medium-sized Businesses across the UK, late payments have increased when compared to last year. This is a growing concern due to a new Business Confidence monitor report that has been produced by the Independent Chartered Accountants of England and Wales (ICAEW).
Nearly a quarter of SMEs surveyed across the United Kingdom reported that late payments are becoming a bigger issue than they were a year ago.
Small Businesses in six out of the major nine industries surveyed report that the issue of late payment is growing compared with 2018.
The continuing lack of reassurance over Brexit has contributed to affecting some business industries. The ICAEW was quick to point out though that the government’s announcement of increased spending combined with tax cuts cut a positive picture for the future.
The matter of late payments for small businesses is nothing new. The amount of late payments occurring for SMEs in the UK seems set to be up and down for the foreseeable future, because of this business owners have been well-advised to be on guard.
Late Payments for SMEs – The consequences
Many SMEs collapse every year from not taking exhaustive debt recovery action to attempting collection of unpaid invoices. SME owners are urged to be on guard against the many excuses that are made for non-payment. It is vital that you seek expert advice and help to avoid losing out on recovering your monies from debtors who have no intention of paying.
Following the latest report, the ICAEW has begged 10 Downing Street to recognise that the UK businesses are facing other problems, not just those posed by Brexit.
Michael Izza, ICAEW chief executive, said: “The Prime Minister has promised Brexit by 31 October and the overriding priority of his government must be to get a good deal. More than anything else that will give a business the stability it is crying out for.”
What can you do?
Don’t wait around to collect unpaid invoices as acting quickly is often the difference between successful and unsuccessful debt collection: read our blog for more tips on debt collection.
DCBL also offers a free debt consultation: for more information give us a call on 0203 298 0201 or fill out our contact form.
