Posted by Stewart Wilkinson, Partner
On 1 September 2016 Withy King LLP merged with Royds LLP. The trading name for the merged firm is Royds Withy King. All content produced prior to this date will remain in the name of the firms pre-merger.
Late payment continues to put a strain on businesses according to recent research
A study conducted by insolvency trade body R3 has found that one in five businesses are owed payment on invoices that are at least 30 days old.
The problem of having to wait on money owed was particularly acute in sectors such as manufacturing, services and retail.
Phillip Sykes, from R3, said that late payment often hobbled firms’ plans to expand and could place businesses at risk of liquidation in the most serious cases.
“The UK’s late payment problem is a persistent one, and puts unnecessary strain on the finances of businesses,” he said.
“Businesses having to wait too long to receive money owed can have a harmful knock-on effect not only on their own business but further down their supply chain too.
“The rise in the proportion of businesses in a position to expand is a positive indicator. However, with businesses looking to expand, cash-flow becomes increasingly important and late payment can needlessly jeopardise access to cash. Being paid late and being paid inconsistently prevents businesses from being able to plan ahead with confidence.”
A separate study earlier this month found that the average SME in Britain was owed £12,000 in overdue payments and that almost a quarter of small businesses had reported a brush with insolvency as a result of the problem.
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