Adams Moore supports Pay in 30 Days scheme
With late payments reportedly costing SMEs more than £2bn a year, it’s a real issue that needs addressing. Consequences of late payment range from having to rely on overdraft facilities, paying staff late or stunting business growth because of lack of funds to invest.
At the worst end of the scale, bankruptcy is unfortunately a common result of late payment. One in five small businesses say they face the potential of bankruptcy if they are owed between £20,000 and £50,000. according to a survey by Bacs Payments Schemes Limited. The same research highlighted that seven per cent of UK business feel they are already in the danger zone.
So, whilst there are ways that businesses can limit the exposure to late payment, the business community also needs to come together to support the cause of getting paid on time. The Greater Birmingham Chambers of Commerce is backing a scheme called Pay in 30 Days. Companies are being called upon to sign up to the scheme to pledge their support and stand strong in the face of late payment.
Benefits of supporting payment in 30 days are boosting the local economy and growing your business as a result of having cash flow to invest in staff or equipment. For the government, growing businesses means more tax and VAT for the pot.
Adams Moore supports the Pay in 30 Days scheme and is urging clients and local businesses to do the same. A simple online sign up makes the process quick and easy, and will make a significant difference in getting the word out there that late payment is simply not acceptable.
Business interested in learning more about ways they can help avoid late payment through better invoicing processes and good knowledge of customer payment procedures can access advice here.