Late payers head gripes
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by Lee lumber • Late payment is the single biggest problem facing Britain's independent businesses and hauliers are no exception, according to a Forum of Private Business survey.
Owner-driver Ron Richardson agrees that late payment is hauliers' biggest problem—and says some of it is self inflicted. "We screw ourselves. We're the world's worst for sticking together," he says, citing reports that some are offering 180 days credit to win contracts.
He believes hauliers will simply undercut each other if the Government introduces interest on late payments and the answer is to stick with companies that pay on 30 days.
"It's all right making a profit but if it's in someone else's bank account it's no good is it?" says Richardson.
D&D Services owner Steven Gee says he has seen too many small hauliers go under because of late payment. He lost £4,000 when a late payer became a nonpayer when he first started hauling and picked his two current contracts as they pay after 30 days. "1 think cashflow is more important than anything," he says. "your overdraft charges cripple you when you go overdrawn."
In the Forum of Private Business's survey, 16% of companies listed late payment as their top gripe. Uniform Business Rates came second but 57% of companies plan to do something about it by appealing.
Lack of business was the third highest priority for business, followed by the cost of finance.