BusinessBusiness RecoveryGovernment’s wrong signal on late payments

Government's wrong signal on late payments

At the weekend, I learned that BERR has completely withdrawn funding support for the website, “payontime.co.uk”, run by the Better Payment Practice Group- a lobby group that encourages companies to pay their bills on time. Not great timing on behalf of the government, especially when there is so much in the press about SMEs suffering cash flow difficulties due to slow trade payments from big company clients. Perhaps BERR is fed up with flogging a dead horse on this issue. Far from improving, trade payments are getting worse and worse.
Only last week, Matalan, the fashion retailer, announced that it will be imposing a 2% “contribution” discount on all supplier invoices in order to fund future investment in its business- the argument being that suppliers will be able to grow on the back of Matalan’s future growth.Thanks, but if I was a supplier, I might have chosen to invest directly in my own business first – given the choice!

BERR has said it is still engaging with “experts” on the subject of late payments, and is also exploring non legislative approaches to tackle the problem. Given the fact that the current government has plenty of things to worry about at the present time, I don’t expect immediate action on the subject.
I advise SMEs in particular to seek advice from their bankers or accountants as to how they can improve their credit management skill sets as a matter of some urgency.

Related Articles

Martin Williams

Business Recovery Martin Williams

7y Accountancy Age, Reporters
Time to Act against slow payers

Business Recovery Time to Act against slow payers

7y Martin Williams
Cash-struck consumers dent recovery hopes

Business Recovery Cash-struck consumers dent recovery hopes

7y Martin Williams
Sort out the credit sloths

Business Recovery Sort out the credit sloths

7y Martin Williams
Window dressing won't save Britain's high streets

Business Recovery Window dressing won't save Britain's high streets

7y Martin Williams
EU ding dong over accounts filing Exemption

Accounting Standards EU ding dong over accounts filing Exemption

7y Martin Williams
Insolvency stats are head-scratchingly strange

Business Recovery Insolvency stats are head-scratchingly strange

7y Martin Williams
Authorities wake up to £38bn robbery

Business Recovery Authorities wake up to £38bn robbery

7y Martin Williams