Late Payments – Chancellor’s Statement seeks to reassure business

Late Payments – Chancellor’s Statement seeks to reassure business

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.

Late Payers

The Federation of Small Businesses (FSB) has been campaigning hard for the issue of late payments of invoices to be dealt with by the government.

It has been a year since the Chancellor announced that this was an issue that was being taken seriously and a crackdown was promised but, frustratingly for smaller businesses, nothing has transpired yet. The FSB has been increasing their pressure for a commitment from the government ever since, and this week the Chancellor once again mentioned the issue in the Spring Statement. 


Philip Hammond sought to provide assurances that work had been going on and this was an issue that the government were taking seriously saying, “We need to tackle the scourge of late payments. As a first step we will require company audit committees to review payment practices and report on them in company accounts.”


The National Chairman of the FSB, Mike Cherry, spoke of his frustration with the current situation, “Small businesses are sick and tired of being left out of pocket by some unscrupulous big businesses taking advantage of this imbalance in power to improve their own balance sheets or mask their own financial failings. Nobody should want to see small business owners turning to personal credit cards or overdrafts because of late payments, or even worse for a business to go under as a result of not getting paid.”
This promise of commitment from the Chancellor to tackle the problem has been very well received and the fact that the first measure, to make a Non-Executive Director responsible for the supply chain through the Audit Committee of every large business, and to report back through the Annual Report on their progress, shows progress.

Cashflow problems due to late payments


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.
The problem that many SMEs have is that they are unwilling to chase late payments or 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. However, routinely late payments could spell the end of the business.


This is where it pays to work in partnership with a company like Daniels Silverman. An established and reputable collection agency with expertly and ethically trained staff can provide credit management services that ensure that your invoices are paid on time. They are skilled at working hard to ensure that you get your money while at the same time protecting the relationship you have with your clients. The cost of being paid on time should not be the loss of a client or future revenue. 

White Label Credit control services


We can white label our services so that we act as part of your team and give your clients friendly reminders of their outstanding invoices. You receive a professional service with a high level of success and your client has a point of contact for any queries.
We don’t charge commission, we work on a flat fee basis so that you are in total control of what you spend depending on the number of invoices you want to be collected. We also provide a same day service allowing you to keep your accounts up to date and accurate.


A key part of any effective credit management routine are regular credit checks.

This should be both for new customers as well as those who are seeking an increase to their credit limit.

As part of the service provided by Daniels Silverman, we credit check your customers if they are experiencing issues paying your invoices on time.


For more information about how Daniels Silverman could support your business please get in touch. We would be happy to talk to you and explore your options.

http://www.danielssilverman.co.uk/contact