Tuesday 13 April 2010

Due date


Late payments are still a major concern for small and medium-sized enterprises struggling to deal with the fallout of the recent recession in the UK, it has been claimed. According to new research by BACS Payment Schemes, which is behind direct debit and BACS Direct Credit, UK SMEs have to wait on average 41 days longer than their originally agreed payment date.

This amounts to a 9.5-day increase on the 31.5 days small companies were waiting for their payments in 2009. Moreover, more than a third of SMEs said that large companies were the worst culprits when it came to late payments, while 17 per cent said that sole traders withheld cash for the longest.

Commenting on the research Gareth Osborne, of APA, said: "Late payment is a huge problem for small businesses and it’s alarming to hear that small firms are waiting even longer to be paid. Late payment is one of the major factors affecting the survivability of UK SMEs even eclipsing even taxation and regulation."

APA will be writing to the new Small Firms Minister on appointment following the election.

APA

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