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Late payments 'pose a problem for business accounts'

Late payments 'pose a problem for business accounts'
Date of Publication: Wednesday, 31 March 2010 00:00

Businesses often have to wait for over a year to receive the money owed to them.

Over a third of businesses have to wait for more than a year in order to receive payments.

Research by Bibby Financial Services shows 35 per cent of firms are finding it can take over 12 months for the money customers owe them to land in their business accounts.

Such UK account problems are particularly prevalent in the manufacturing and construction sector, with 47 per cent of firms in the industry reporting waiting more than a year for their money.

And with seven per cent of all organisations spending at least three days chasing up invoices of each month, tardy payments could be costing business bank accounts £1.9 billion every year.

Edward Rimmer, UK chief executive for Bibby Financial Services, states: "The UK business community has got to stem the tide. We cannot keep stalling payment and expect it to have no consequence."

But this is not the first sign of financial difficulty for UK businesses. A recent Hiscox study showed a fifth of entrepreneurs raided their personal savings last year due to difficulties caused by the economic crisis.

By Bret ClementADNFCR-2079-ID-19699335-ADNFCR
Wednesday, 31 March 2010 00:00
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