Late payment crisis continues despite new legislation
The problem of slow payment has not been improved by the government's Late Payment Act, according to a survey of credit managers.
The research, carried out by the organisers of the Credit 2000 conference, showed 82% of credit managers believe the act has ‘done nothing’ to improve late payment.
Interviews with 13 companies turning over £100m show that even they have not improved the speed with which they pay invoices to smaller suppliers as a result of the act.
A recent report from Grant Thornton supported the findings when it showed that the average payment period in the UK is still 46 days. A study by credit insurer Euler Trade Identity showed that 17.9% of invoices are still waiting payment 30 days after their due date.
The Late Payment of Commercial Debits Act was enacted in 1998 to address what has become one of the fundamental problems of business by giving firms the statutory right to claim interest on late payments.
The Credit 2000 has now been reorganised in light of the research to stage a three-day summit for executives to examine the problem.<
Small firms minister calls on UK business to uphold prompt payment