Don’t put up with late payment!
8th Feb 2017
According to figures produced by the Federation of Small Businesses (“FSB”), out of 100 firms in the region surveyed, 88% said that customer’s pay late, with one in ten saying that at least 80% of customer payments are delayed. For obvious reasons, this can have a significant impact on the cash flow of a small business, as well as causing lost time in chasing payments.
Surprisingly, according to the FSB, many of the offenders are in fact larger businesses with far greater financial resources than those to whom they owe payment. This in turn begs the question, why should small local businesses have to bankroll larger companies?
Under measures recently proposed by the Government, the late payment culture which has been so prevalent in the UK may be set to change. As from April 2017 it is planned that large companies and limited liability partnerships will be required to report twice yearly on their payment practices and performance. This shall include the average time taken to pay supplier invoices. It is hoped that this will help address the late payment culture by highlighting those companies with bad practices and providing small businesses with greater transparency so that they may enter into supply agreements with their eyes open.
Also included in the proposals is the appointment of a Small Business Commissioner to support small businesses in resolving payment disputes.
The FSB has estimated that ending the UK’s late payment culture could prevent 50,000 business deaths a year and add £2.5bn to the UK economy.
This all sounds like very good news for small businesses, but what if you are already owed payment for outstanding invoices?
Rogers & Norton have an experienced dispute resolution team with extensive knowledge of debt recovery practice and procedure. We can assist you in recovering what is owed to you, from writing an initial letter before action to your debtor right through to securing judgment and advising you as to the most appropriate enforcement methods including bankruptcy and winding-up proceedings. We can ensure that we claim all that you are entitled to under late payment legislation. Many people are unaware that in addition to the balance outstanding under commercial invoices they are also entitled to claim interest up to 8% above base rate and late payment compensation.
We can tailor our involvement in your matter to suit your budget requirements and may be able to agree bespoke fixed fee structures to suit you.
For further information please contact either: