late payments tend to shift the balance in favour of larger firms either because they are the ones who benefit from paying late or can better withstand the working capital pressures if they themselves are having to cope with late payment of invoices by others.”“And yet it is the millions of small firms that provide around half of the employment in the UK and much of the economy’s productivity and growth depends on them functioning in a healthy finance environment.” __________________________________________________________________________________
Named and shamed: 35 worst offending late payers and the crippling impact on small businesses The top 35 worst offending businesses for late payments in the UK include household names like E.ON and Thomas Cook. __________________________________________________________________________________ Using customer data, Xero revealed which small business sectors were owed the most in late payments
10 sectors most affected by late payments
- Wholesale trade (£42, 989)
- Administration and support (£40, 662)
- Transport, postal and warehouse (£31, 555)
- Public administration and safety (£31, 541)
- Electricity, gas, water and waste services (£31, 309)
- Financial and insurance services (£29, 732)
- Manufacturing (£29, 123)
- Information, media and telecoms (£28, 682)
- Construction (£25, 880)
- Professional, scientific and technical services (£23, 554)
Three tips to improve cash flow and protect businesses from late payment debtExperts from Xero offered three methods to help small business owners get on top of their invoices.
- Be selective about who you workwith and credit check prospective clients. A bad credit history could indicate issues with late payments in the future
- Implement interest chargeson late payers to encourage prompt payment
- Set automated responses:many accounting software solutions are now capable of issuing automated reminder letters when payments become overdue. Automating the process of sending a reminder email reduced the amount of time you have to spend waiting and chasing for payment.
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