One in six SMEs worried about the future
The figures are contained in Zurich’s SME Risk Index for Quarter 4 of last year, in which YouGov questioned decision makers at more than 500 businesses. High street retailers are among the most concerned with 21% of business owners believing they are at risk of going under. That figure rose from 12% in Quarter 3…
Number of FTSE 350 firms signing payment code triples
Business Minister Michael Fallon wrote to businesses in November 2012 asking them to sign up to the code which requires large firms to pay small firms promptly. Mr Fallon said that firms that failed to sign up might be named and shamed. A further 94 FTSE 350 firms have joined since Mr Fallon made his…
SMEs struggling with cash flow and using up reserves
The British challenger bank, Aldermore, surveyed 300 SMEs and found that 38% are depending on cash reserves to fund future development. A further 12% said they will turn to a bank loan, and 9% to an overdraft. The remainder planned to use other forms of finance or were not planning to fund any future growth…
Debts owed to businesses soar past 1bn
It shows that firms are finding it increasingly difficult to stay on top of credit control. The CSA research shows that the amount of debt outsourced by businesses to collection agencies reached £1.145bn in the third quarter of 2012. That was a 12% increase on the second quarter figure of £1.02bn. The total amount of…
Big companies face naming and sharing over Prompt Payment Code
The code, which was drawn up by the Institute of Credit Management, has been in operation for four years. Its signatories commit to paying suppliers within the agreed time and ensuring that there is a proper process in place to resolve any issues that may arise. A total of 1,182 companies have signed up to…
Firms paying bills quicker – even big companies behaving better
Experian’s late payment index shows that between July and September this year, companies took 24.88 days beyond the agreed terms to settle a payment. In 2011, the figure was 26.11 days for the same period. The most significant improvements came in the food industry. Food retailers settled payments 29.15 days late on average. That’s 5.06…
Business insolvencies reach a two-year peak
Figures released by the financial services firm RSM Tenon showed that more than 400 companies became insolvent every week. This was a 5% increase on the final quarter of 2011. The industries hardest hit were business service providers such as IT consultants, designers, and equipment and maintenance suppliers. The sector made up 25% of the…
Have your say about EU Directive on late payments
The directive is due to be implemented next year. Businesses from all the participating member states will then be under the same obligation to ensure that invoices are paid on time. The main points in the EU Directive are: Public authorities will be required to pay suppliers within 30 calendar days of receipt of an…
10% jump in County Court Judgments against businesses
The Registry Trust, which compiles the figures, says there were 34,602 CCJs against businesses in England and Wales in the first quarter. That was a rise of 9.8% on the final quarter of 2011. The total value of the judgments in the first three months of this year was £151m. The figure for the previous…
Late payment threatens survival of smaller businesses
The credit reference agency Graydon UK, working in conjunction with the Forum of Private Business, surveyed 500 small firms across the UK. The responses showed that 16% had almost been put out of business as a result of late payment. A total of 51% cited it as a problem, and 23% said it was a…
Bankruptcy: untaken pensions can be used to pay creditors
When a person is declared bankrupt, the courts will assess their income and decide how much they can afford to pay their creditors each month, usually for a period of three years until the bankruptcy is discharged. Income from pensions already being taken can be used to pay creditors but until now, a pension that…
Do you need to take a stand over late payments?
Ministers also want businesses to sign up to its Prompt Payment Code, which already represents about 60% of the supply chain value in the UK. The Code is designed to encourage best practice and the Government is trying to set an example by pledging to pay 80% of invoices within five days. These are welcome…
OFT updates its guidance on debt collection
The revised guidance highlights specific practices that the OFT considers to be unfair, such as using Facebook, Twitter and other social networking sites to contact debtors. It says that it is not acceptable to contact debtors at unreasonable times or inappropriate places, such as when they are a patient in hospital. The guidance also warns…
Could you make a profit pursuing late payers?
Record numbers of firms are going out of business every day. Their demise is often caused by their inability to recover money owed to them. Thankfully, there are many options available when it comes to dealing with debtors. If handled properly, firms can turn credit control into a profit making operation by recovering unpaid money…