It’s a nightmare because as all small businessmen will tell you, cash goes
out the door at a much faster rate than the one at which it comes in.
That’s why the story on our front page last week about the late payment of
bills by some of the biggest companies in the country was so important. Simply
put, nothing threatens a business like the inability to have invoices paid.
Tesco, we revealed in research conducted with credit specialist Graydon, only
paid 67% of invoices within terms last year, compared to 87% the year before
Now the competition commission has asked for the research as part of their
investigation of the groceries market. It’s not yet clear why, but it seems
there may be concern about the way late payment affects the market.
It remains for the commission to demonstrate the link.
But the interest underlines the concern that persists about late payments and
its implications for small and medium sized businesses, the engine room of the
Wholesale late payment can be its own form of cashflow control. If practiced
deliberately it would form a very cynical method of exploiting the relative
weakness of suppliers who find themselves dependent on big customers for their
trade. The NFU told us there was an imbalance of power in the supply chain, such
that small suppliers were treated ‘appallingly’. That argument is
What big business must realise is that such behaviour is counter productive
because it threatens the existence of the suppliers who provide the means by
which big companies do their business. And that cannot be a good thing.
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team
UK M&A activity bounced back strongly in July and August, according to analysis by the deals practice at PwC.
Smith & Williamson has added Jim Clark and Philip Marsden, of Marsden Clark Corporate Finance Limited, to its corporate finance team.