Late payment has long been a problem for companies, but the issue of business debt recovery may be particularly pertinent among firms at present in light of the ongoing economic problems affecting the UK and many other countries.
The Forum of Private Business (FPB) recently drew attention to this potential source of difficulty. It pointed out that figures from payment body BACS show that small to medium-sized enterprise are owed an all-time high of ?33.6 billion. This is up from ?30.4 billion in 2010.
Ahead of last month’s Budget, the forum called for measures to enable prompt invoice payment to filter down the supply chain, beginning with large companies at the top. For example, it recently led a late payment campaign that was backed by many of the UK’s leading trade bodies. The initiative secured a commitment from the government to address the issue without delay and it resulted in the reformation of the Late Payment Working Group.
Meanwhile, the FPB is also conducting research with credit rating agency Graydon UK into enterprises’ payment and cash flow management systems and barriers to implementing them.
Commenting on the issue of late payments and debt collection, senior policy advisor at the forum Alex Jackman said: “Small business owners are being expected to drive the economy forward yet find that relentless cost increases, mounting late payments and continued credit restrictions severely hinder their ability to control cash flow.”
He added that cash is the “lifeblood of any business” and action is required if the country is to “mend this cash flow crisis”.
Thankfully, it is now easier than ever for companies to source help with their business debt recovery. By utilising the assistance of professional agencies, they can make their lives easier and recover more of the money that is owed to them.
