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Improvements in Takings Overshadowed by Late Payments
Listed under: News
Published: Tuesday, April 06, 2010
Despite up to 35% of small businesses in the UK experiencing a significant rise in their profits since February 2010, a recent report has revealed that a whopping 35.5% of this is often tied up in late payments, amounting to as much as £16,608,500 at any one time – up £1,014,780 on the previous month.
The research, conducted by business support group, the Forum of Private Business (FPB), shows that cash flow difficulties not resulting from late payments have also become worse for many enterprises, with 20% of retailers revealing their burdens had increased in March.
Commenting on the findings, Matt Goodman, policy representative at the Forum, says, “Our research shows that while there are indications of recovery for small firms, particularly those seeing a boost in orders and sales, this is being more than offset by increasing late payment."
He continues, “Unfortunately, it's a case of two steps forward, three steps back as far as small businesses and the economy are concerned. Late payment devastates cash flow. It is important that more large companies sign up to the Government's code and that the principle of sustainable payment is embraced across the supply chain.”
What are the biggest challenges facing your business this year? Email your thoughts to .(JavaScript must be enabled to view this email address)
The research, conducted by business support group, the Forum of Private Business (FPB), shows that cash flow difficulties not resulting from late payments have also become worse for many enterprises, with 20% of retailers revealing their burdens had increased in March.
Commenting on the findings, Matt Goodman, policy representative at the Forum, says, “Our research shows that while there are indications of recovery for small firms, particularly those seeing a boost in orders and sales, this is being more than offset by increasing late payment."
He continues, “Unfortunately, it's a case of two steps forward, three steps back as far as small businesses and the economy are concerned. Late payment devastates cash flow. It is important that more large companies sign up to the Government's code and that the principle of sustainable payment is embraced across the supply chain.”
What are the biggest challenges facing your business this year? Email your thoughts to .(JavaScript must be enabled to view this email address)
