There will be a government consultation on strengthening the powers given to the Small Business Commissioner to hold firms to account should larger companies fail to make their payments on time. What these powers would be is not certain, but they could include enforcing binding payment plans or imposing financial penalties on businesses found to have unfair payment practices.
Browsing category: cashflow
UK firms not ready Figures seen by Newsnight suggest that many UK businesses are woefully unprepared for a no-deal Brexit. In February HMRC launched a scheme aimed at easing imports if the UK left the customs union and single market suddenly. The Transitional Simplified Procedures scheme (TSP) has been designed to help UK businesses import […]
“For many small businesses, the difference between getting paid in 60 days and 90 days can be vital. Cashflow problems due to late payments are a real problem for SMEs in this country and with first quarter figures showing a rise in insolvency among smaller businesses, it is an issue that needs to be robustly addressed.
Unfortunately, the situation for many SMEs is that late payment of invoices can be the difference between staying in business or going under. Cash flow is the number one cause for businesses to fail and repeatedly late payment is a contributing factor to this.
Building a strong workforce and ensuring continuity in your service or product is key for any business and one of the best ways to guarantee that service doesn’t suffer is to use a reliable temp agency. 20% of companies now report that they are using temp agencies; their expertise and experience allows them to spot quality candidates and weed out the unreliable to provide you with the flexibility that is necessary in order to run your business effectively. The agency will do the work of screening the candidates and ensuring only those who can fulfil the role are sent.
Many sole traders and small businesses are unwilling to chase bad debt.
Research has shown that many of these are hesitant about doing so because of how awkward or uncomfortable it makes them feel. Others do not pursue what they are owed for fear of antagonising or alienating a customer who they want to keep. Even if these businesses have started trying to recover the money 3 in 10 will simply give up before they have their money.
In a busy and fast-paced environment these companies may struggle to find the time, or have the necessary skills required to recover any monies owed from unpaid invoices. As with many companies maintaining good customer relationships is key to retaining clients and securing repeat work and this can put businesses in a difficult position. How do you get the money you are owed, for the work you have done and keep a healthy relationship with your client base?
How many business owners use this time to make business resolutions? The Christmas break has allowed a little time for reflection and a lot of business owners will be heading back to work with renewed determination to focus more on growing their business, rather than working in their businesses this year, but how many will make specific resolutions?
Debt recovery within the construction industry takes specialist knowledge and understanding of the sector. Construction contracts are often very complex, (sometimes deliberately so), and this results in businesses being paid less than they are owed, not being paid on their terms or not being paid at all.