1.2m businesses affected by late payments: Tenon Recovery

As many as 1.2m UK businesses are being affected by late payments, according
to Tenon Recovery.

The mid-tier firm surveyed more than 1200 business owners and senior managers
in compiling the research which shows three in five businesses are affected, and
its now urging businesses to adopt a responsible attitude towards payments.

35% of businesses surveyed estimate that late payments cost them in excess of
£10,000 a year both in terms of bank charges and the administrative costs of
chasing payments.

Tenon estimates the average amount owed in late payments to have risen by a
third in 2008, taking the average amount owed by UK companies to around £40,000.

Carl Jackson, national head of Tenon Recovery, said managing cashflow is
fundamental to a business’ survival in the current economic climate and late
payments forms part of this.

‘More than ever, businesses must adopt a responsible attitude towards late
payments to avoid the domino effect of business collapses that late payments can
cause. This means not only making payments on time to avoid causing problems,
but having clear payment terms, credit control procedures and chasing
slow-paying customers,’ he said.

Further Reading:

Late
payment woes hit SMEs

Tenon
continues to beef up recovery arm