The total cost of late payment to UK businesses stands at almost £50 billion, according to a report from payments processor Bacs.
A total UK trade deficit of £2.4 billion is no cause for concern, according to the Institute of Directors, following the publication of figures by the ONS that may appear worrying at first glance.
Let’s be clear about one thing upfront – effective cash flow management is not an area where you should be cutting corners, as it’s at the very heart of why you are in business in the first place.
You might think that only taking cash keeps your cash flow simple and your costs down – after all, it’s in the name ‘cash’ flow, right?
The Small Business, Enterprise and Employment Bill, introduced to Parliament at the end of June, sets out several measures that aim to improve small businesses’ access to finance.
If you received this month’s CPA newsletter, you’ll have seen our report about trade debt – the combination of outstanding and overdue invoices – and how research has shown it is a particular problem for the smallest of companies.
The recent reports about payday loan lender Wonga using made-up solicitors to threaten legal action for non-payment are only one part of the problems faced by some borrowers of firms throughout the industry.
In one of the most headline-grabbing examples of poor credit control to make the news in recent years, the utilities provider npower has been given an ultimatum – bill promptly, or halt sales.
The only good approach to bad debt is to avoid it – not ‘at all costs’, but at costs that are worth incurring, in order to minimise your exposure to debtor risk.
Trade debt – which effectively means outstanding and overdue invoices – has left around one in eight SMEs in severe debt difficulties of their own, according to a recent report.