Despite the government promising to clear it up, the issue of late payment is continuing to be a contentious one for small and medium-sized enterprises (SMEs).
According to recent research by Sage UK and Ireland, business leaders are unimpressed with the Prompt Payment Code, which was designed to help firms struggling with the problem.
Nearly two-fifths (38 per cent) of respondents said that the Code was ineffective, while 16 per cent labelled it as “extremely ineffective”. Perhaps tellingly, 41 per cent said they hadn’t even heard of it.
Cashflow is continuing to be a problem for SMEs, with one in ten describing it as a major difficulty and 14 per cent saying that they have been unable to pay suppliers as a result – meaning the issue continues further down the chain.
Sage UK and Ireland’s managing director of start-ups and small business division Lee Perkins said: “Thirty days is long enough, but it’s absolutely criminal that the majority of firms experiencing late payments of sixty, or even ninety days.”
Is late payment an issue for you? What would solve the problem once and for all?
Posted by the Secret Businessman