32 of the Government’s biggest suppliers have now signed up to the Prompt Payment Code. The Code, administered by the Chartered Institute of Credit Management, sets standards for payment practices and best practice, and was developed with the aim of improving cash flow between businesses and moving towards a culture of prompt payment.
Research from the Federation of Small Business (FSB) shows that the UK’s poor payments culture costs the UK economy £2.5 billion each year and leads to the demise of 50,000 small firms.
30 per cent of small businesses report that, on average, 30 per cent of payments are typically late. In 2016 the average value of each late payment stood at £6,142.
In a press release, FSB National Chairman Mike Cherry says that for far too long small businesses have been subjected to supply chain bullying and they have been victims of the poor payment culture which is rife in the UK.
A June survey into the financial struggles faced by business owners* showed that late client payments was a major financial worry for 51.9 per cent of those polled. With that in mind, our SME business experts at Beavis Morgan are available to structure your business with cashflow and profit forecasting to measure performance and maximise opportunities. We work to a pre-determined plan, to help you avoid any nasty surprises.
Through our partner businesses, BM Structured Finance and BM Advisory, we are also able to help with sourcing and restructuring debt finance for SME businesses, as well as assisting with resolving issues which can impact on business performance and success, and finding innovative solutions for businesses and individuals in distress.
If you would like to discuss ways of improving the free cashflow in your business, please contact Steve Govey or your usual Beavis Morgan Partner.
* Source: Client retention, cash flow and late payments, key concerns for SMEs