CCR Magazine

CCRi banner ad
You are here  :Home arrow News arrow Late payments on the rise for UK SMEs
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Late payments on the rise for UK SMEs PDF Print E-mail
Monday, 17 August 2015

Despite Government attempts to enforce a code for prompt payment and plans to appoint a Commissioner to oversee business rows, the proportion of UK SMEs suffering from the chronic issue of late payments is rising. The Bibby Financial Services SME Confidence Tracker has found that the number of UK SMEs suffering from late payments has jumped by nine percent from Quarter 2 2014 to Quarter 2 2015, with over half (51%) of businesses waiting more than 30 days for payment.

On a regional level, SMEs in the West Midlands and Yorkshire and Humberside are currently suffering the most from the plague of late payments. The proportion of SMEs suffering from late payments doubled in the North East from Q2 2014 to Q2 2015.
 
SMEs in the construction sector suffer the most from late payments, with 55% of SMEs having to wait over 30 days to be paid, up by 11 percentage points since Q2 2014. Construction is closely followed by manufacturing and wholesale as the top sectors facing late payments.
 
David Postings, UK Chief Executive of Bibby Financial Services, said: “Despite efforts by the Government to tackle the late payments issue, the scale of the problem is increasing at an alarming rate. The number of SMEs waiting over 30 days to be paid is on the rise, while in some regions twice as many SMEs are affected by this issue, compared to this time last year.
 
“All too often SMEs are faced with the choice of accepting crippling payment terms or losing out on business. This issue is particularly brutal in the construction industry where large firms have been known to withhold payment for so long that the SME sub-contractor goes out of business.

“In April we will see new legislation naming and shaming businesses with the worst records. While we will have to wait and see the effect of this, more can be done now. There needs to be a change of culture, where larger businesses treat small businesses fairly and view them as an extension of their own business.”

(Source - Bibby Financial Services Press Release)
 

 
CCRI
3 October - Guoman Tower Hotel, Central London 

CCRInteractive, in association with Marston Holdings , is the largest and leading one-day conference from the publishers of CCRMagazine – a truly national and international event for the credit industry.

This landmark event allows delegates to: Learn best practice of how to increase profitable sales in today’s economy. Understand the key compliance issues and how they will impact upon you. Discuss the legislative and regulatory framework and how it will effect you. Consider the potential effects of Brexit on your business. Discover the latest innovations in the market to improve your collections. Motivate your staff to achieve ever improved results.

To book to attend in 2017, contact Stephen Kiely  or Alison Lucas. To find out more about being part of this landmark event, please contact Gary Lucas
CCRI 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

The Credit Excellence Awards

Awards 

Tuesday 3 October - Guoman Tower Hotel, Central London


Do not miss your chance to meet and network with the Winners and Finalists at the Credit Excellence Awards, in association with Hoist Finance.


To book your place to attend, please contact Alison Lucas.


subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197