In Episode 2 of Inside Accountancy, Accountancy Age reporter Chris Jewers discusses the issue of late payments with Dr Louise Beaumont.
In August, it was found that late payments are a greater challenge than they were a year ago for one in five businesses, according to a report from the BCM (Business confidence monitor). Six out of nine sectors (Property, Business Services, Manufacturing & Engineering, Construction, Retail & Wholesale, and Banking, Finance & Insurance) are experiencing this as a growing issue.
The problem is even larger for SMEs, with almost a quarter (24%) reporting this as a problem, and an estimated 50,000 businesses a year closing due to the issue.
Key statistics on late payments:
- One in five businesses surveyed by the BCM said being paid late was a problem they face, an increase on late year, with almost a quarter (24%) reporting the same
- An estimated 50,000 businesses a year close as a result – Federation of Small Businesses (FSB)
- 92% of businesses admit to paying their suppliers late – Bottomline
- 43% of SMEs surveyed by Small Business Commissioner have faced late payments – Small Business Commissioner white paper
- 82% of SMEs say this is a ‘significant issue’, with many in this group saying they decided not to take any action for fear of putting their client relationship at risk – Small Business Commissioner white paper
- SMEs are owned £16bn in late payments – BACS Payment Schemes Limited
- Measures introduced by government in June 2019 criticised by SMEs and AAT
Listen and subscribe to our podcasts on Blubrry, Spotify, Apple Podcasts and Google Podcasts.
Blubrry | Spotify | Apple podcasts | Google Podcasts
Podcast: Play in new window | Download (Duration: 16:56 — 23.3MB) | Embed