It has been reported in the Financial Times that late payment has become an epidemic that is threatening many small companies according to the Forum for Private Business lobby group (“the FPB”). A survey conducted by the FPB of 500 small businesses found that 16% had come near to closure because of tardy payments by customers and 51% said late payment was an issue.
It is important that businesses actively manage their debtors and have effective credit control procedures in place. More so in view of the double dip recession.
Professional help should be sought at the earliest opportunity where businesses are concerned about their financial position.
By commercial solicitor, Nicola Whittle