The number of companies affected by late payments has more than doubled in
the last six months.
As many as 41% of businesses are affected by late payments, according to the
latest Baker Tilly Finance Director Survey.
The number of CFOs reporting problems with late payment has doubled since
March, and reveals that businesses face significant challenges before the
More than half of respondents expect there will be no improvement at all in
trading conditions for their businesses for the next 12 months, and 28% expect
trading conditions to worsen in 2010.
Although lack of bank credit is no longer seen as a primary issue, lack of
consumer confidence is seen as a factor adversely affecting business
Rob Donaldson, partner and head of M&A and private equity, said: “Reduced
concern about the availability of bank credit could be interpreted as a positive
sign of an easing of credit conditions. However, as evidenced by the pressure on
supplier payments, I suspect it more reflects businesses
simply getting used to tough conditions and moving on. Some entrepreneurs have
given up on their bankers and are finding another way.”
And although data showed 33% expect an increase in like for like sales over
the next six months, Donaldson continued: “Times will remain tough for business
over the next year and CFOs need to remain ever-vigilant and keep control over
costs and management of working capital.”
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The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies