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Late payers kill small firms

8th August 2002, Page 12
8th August 2002
Page 12
Page 12, 8th August 2002 — Late payers kill small firms
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Which of the following most accurately describes the problem?

• Small and medium-sized companies are still struggling to get their invoices paid on time by large firms—nearly four years after the Late Payment Act was introduced.

New figures from information giant Experan show the average payment period for large companies has increased from 72 days in 1998 to 77.9 days in May 2002. In contrast, small and medium-sized firms take on average 19.3 days less to pay their bills.

Large firms' foot-dragging policies could change this month as they will come under pressure from other large compa nies when the Late Payment Act is extended.

Steve Kilmister, MD of Experian's business information division, says: "The inequality of the business relationship means that smaller companies often accept late payment from their large customer's as a fact of life. But it's this very acceptance of this culture that can and does drive some companies to the wall."

• The British International Freight Association says there Is now a higher level of business failure than at any time in the Industry's history. Operators should seek help about late payment from groups such as the Better Payment Practice Group: 020 7655 0530.


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