One in three bills paid by large companies to small North East firms take more than 30 days to be processed, hampering the growth of businesses and the local economy. Research conducted by the UK Small Business Commissioner and Lloyds Banking Group found that 30% of invoices issued by small businesses in the region take more than 30 days to be paid. On average firms in the North East are made to wait 40 days before they receive their money, three days more than the national average. The office of the Small Business Commissioner was launched in 2017 to ensure fair payment practices for small firms. Paul Uppal - who holds the position - has recommended that large companies pay suppliers after no more than 30 days. The new data highlights the cash flow challenges faced by local businesses, which can often hamper their growth. Mr Uppal said: “Our initial findings indicate that almost two-thirds of payments are likely to be owed to smaller firms at any time. This is money that could … [Read more...] about A third of North East’s small businesses made to wait more than 30 days to get paid
Small business commissioner
PUBLISHED: 12:56 20 November 2018 Sarah Chambers Late payments cause small businesses stress Picture: SARAH CHAMBERS Archant East Anglian politicians, accountants and business leaders are calling for a clampdown on late payments which put smaller firms at risk as the government looks at what measures can be taken to ease their pain. Ipswich MP Sandy Martin fears over impact of late payments on small firms Picture: ARCHANTOrganisations in Suffolk and Essex are backing a national campaign aimed at beefing up rules around the longstanding issue, which can have catastrophic effects with some firms’ cashflow put under severe pressure.The Association of Accounting Technicians (AAT) says tens of thousands of small businesses collapse every year because of late payments and many more cannot invest, grow or employ more staff because they haven’t received money owed. It wants the Prompt Payment Code to be made compulsory for companies with more than 250 … [Read more...] about Calls for tougher stance on late payments as small businesses count the cost
Late payments are a major problem for small businesses. Olivier Le Moal Cashflow is king – it’s a warning every business knows, and yet late payment is a damaging problem the majority of businesses have come up against. But new recommendations from the Association of Accounting Technicians (AAT), backed by leading backbenchers in a cross-party pressure group, are hoping to change that. The AAT has recommended that the currently voluntary Prompt Payment Code be made compulsory to all businesses over 250 staff. The code, administered by the Institute of Credit Management, aims to increase the amount of suppliers paid on time and promote good practise.The AAT also suggests that the current legal payment terms should be halved from a maximum of 60 days to 30 days, and that a financial penalty scheme be put in place to apprehend consistently late payers, enforced by the Small Business Commissioner.Andrew Mower, the Federation of Small Business’ development manager in … [Read more...] about Cashflow is King, but how do small businesses stay on its right side?
The small business commissioner is travelling to Middlesbrough as part of a crack-down on the late payment culture that is hitting thousands of businesses. Paul Uppal is travelling to the North East on September 4 to take part in a Q&A session with local businesses at the STEM Centre in Middlesbrough. His visit aims to highlight how he is addressing the late payment culture, which costs small firms £2.5bn a year, and how his office can support firms during disputes over outstanding invoices. Mr Uppal said: “The North East and Tees Valley regions are home to a vibrant cluster of small businesses and I am looking forward to hearing their inspiring stories and the challenges they are facing to drive forward their enterprises. “Through my role I aim to give small businesses the support they deserve, in particular to ensure fair payment practices, which are essential in helping them to thrive.” The devastating effect late payments can have on small businesses … [Read more...] about Late payments culture under fire as small business commissioner comes to Teesside
Confidence among small businesses in the West Midlands remains positive, according to the latest Small Business Index (SBI) from the Federation of Small Businesses (FSB). The SBI stands at +4.8 in the second quarter of 2018, although the figures have dipped slightly since the first, when it was at +7. The latest figures show 34 per cent of small businesses expect their performance will improve over the coming three months. A total of 27 per cent believe their performance will worsen. The proportion of small firms saying that gross profits are steady or increasing is at 54 per cent. Growth intentions look promising, with 87 per cent planning to remain the same size or expand in the coming 12 months. The majority, 79 per cent, also report steady or increasing headcounts. A cross the UK, 81 per cent of exporting small firms report that international sales are stable or rising - a 12-month high. Rich Bishop, FSB Warwickshire and Coventry area lead, said: “Although confidence … [Read more...] about Small businesses remain confident, despite Brexit and GDPR