Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

In UK Small Companies Waiting Mort than £35bn in Late Payment

By Alen Felix Subscribe to RSS | May 21st 2012 | Views:
loading
 
  



In UK with large businesses insisting on payment terms of as much as 120 days, many suppliers could be waiting up to five months to be paid for work. According to Bacs, Unpaid bills to small suppliers are now at the highest level in almost five years with combined debts up by almost £2bn compared to the first half of last year. Bacs stated that the average company is waiting almost 30 days longer than agreed payment terms to have their invoices settled. With large businesses insisting on payment terms of as much as 120 days, many suppliers could be waiting up to five months to be paid for work. Bacs revealed that the average small firm had £45,000 worth of unpaid invoices at the end of 2011, up from £39,000 in the first half of the year.

Bacs which runs Direct Debit also revealed that big businesses are least likely to pay suppliers on time, behind the public sector, small and medium-sized firms and individuals. As per the report by the all party Parliamentary Small Business Group published this week recommended that all companies supplying the public sector should be forced to sign the 'Prompt Payment Code’, a voluntary scheme which promotes good payment practice. But the report also noted that there is currently “no adequate enforcement” of the Code so “alternative solutions” may have to be considered.

The rules which allow companies to charge interest on unpaid bills are rarely used and the Government has admitted that late payment legislation “hasn’t worked”. Chief executive of the Institute of Credit Management Philip King stated that the Government should pressure big business to improve their payment practices by only awarding public sector contracts to firms which “can demonstrate a genuine commitment” to good payment practices. Apply with instant bad credit loans @ http://www.instantbadcreditloans.co.uk/ and get some fast credit services for your urgent needs.

As per the separate research by ABN AMRO Commercial Finance suggests the slow payment could be part of a wider cash flow squeeze, with small firms’ domestic turnover falling by 7pc over the first three months of 2012. A sky towering debt record of £35.3bn to small and medium-sized business has been set up to small and medium-sized business. This condition is really making the situation of United Kingdom worse which is still suffering from economic crises. And the government should have to take some correct measures to rectifying all the problems with cool head.

Alen Felix - About Author:
Alen Felix is a expert financial adviser, he wrote a article on financial loan services instant bad credit loans, bad credit loans instant decision, loans for people with bad credit instant decision and loans for bad credit instant decision

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/business-articles/in-uk-small-companies-waiting-mort-than-35bn-in-late-payment.htm

Related Business Articles Subscribe to RSS

A basic guidance to the fair debt collection act
Published by Smith Jhonson on March 12th 2012 | Business
The fair debt collection act is all about protecting the rights of the creditor and the debtor as we...
 
Fair credit reporting and fair debt collection practices are your rights
Published by Safinajones on January 12th 2012 | Business
If you have fallen victim to false credit reports or unfair debt collection practices, do not suffer...
 
Hypo Venture Capital Headlines: Know the tricks to get business loan despite debt
Published by Hypo Venture on January 14th 2012 | Business
After the recent economic meltdown, many business organizations have incurred insurmountable amount ...
 
Implement your rights with the help of debt collections harassment laws
Published by Smith Jhonson on March 12th 2012 | Business
There are numerous consumer laws that are there to protect the consumers from the unlawful and the u...
 
A win-win situation for both an organisation as well as debt management companies by hiring a debt collector agency.
Published by Gabi William on March 27th 2012 | Business
We do all the hard work for you and approach each case very seriously - no matter what the size....
 
Protect yourself with the debt collections harassment laws
Published by Smith Jhonson on March 28th 2012 | Business
There are many consumer protection laws that are applicable to help and provide the consumers safety...
 
Some tips to get rid of your IRS tax debt
Published by Smith Jhonson on March 12th 2012 | Business
The IRS tax debt is such an issue that can go on for years without much progress. Here are ways to g...
 
Open up your arms in collecting bad debt from customers by hiring debt collecting agencies and keep your accounts clear.
Published by Gabi William on March 27th 2012 | Business
Our team of accounting specialists makes the accounting process simple, quick and hassle free....