The UK’s Culture of Late Payments puts SMEs at risk, warns Nucleus
London, England – November 28, 2017
SMEs in the UK are facing issues while managing their businesses as customers continue to fail to pay their bills on time. About two third of the SMEs think that the UK has a culture of late payments which affects them more compared to larger organisations.
Efforts being made to tackle these late payment issues in the UK have had little to no effect which has led to some harmful consequences for most SMEs. A survey of SMEs showed that 64.5% of them believed that late payments made it more complicated to manage cash flow. Companies had to write off as much as 50 per cent of turnover when customers failed to pay on time.
70 percent of company chairmen participating in the survey claimed that their organisation had been badly affected due to such late payments.
Even after continuous efforts made by policymakers to fix the late payment issues, SMEs still continue to suffer as customers fail to pay their bills on time.The UK Government recently introduced a voluntary prompt payment code, which did not receive the kind of response that they had hoped for. Even though plans for a small business commissioner may help in time, SMEs are in need of support right now!
SMEs are supposed to do a lot more to guard themselves from the late payment issues. Around 40 per cent of firms claim to have no time to run after the unpaid invoices, whereas 88 per cent claim to not have investigated services such as invoice finance, that could be used to lessen the adverse effects of late payments.
Nucleus Commercial Finance has been serving many businesses in the UK over the past few years and is offering factoring and invoice discounting packages in the UK. To know more regarding invoice finance, visit their website https://nucleuscommercialfinance.com/products/invoice-finance-services
Nucleus Commercial Finance Ltd.
2 Gees Court
+44 (0)207 839 9451