The Federation of Small Businesses (the FSB) has called for the Government’s promised reforms to late payment culture to be delivered urgently. Though she steps down in just a few days, on the 7th June, the FSB wants Prime Minister Theresa May to push through payment reforms.
According to FSB statistics, 80% of the small business community is affected by late payments, causing 50,000 of them to close each year.
Whilst acknowledging that small firms have seen some improvements, FSB Chairman Mike Cherry wants to see more.
‘Many [small firms] however, are still just about managing to cope with the persistent and debilitating impact bullying and being paid late has on them and their staff. What these firms need is one more push to get the changes that will turn the tide against this unjust and unfair behaviour.’
Late payment changes proposed include more power for the small business commissioner and a stronger prompt payment code.
Are late payments affecting your business?
Do you have the basics in place?
- Make sure your invoices are sent promptly and that they are entirely accurate for the products or service supplied.
- Check that the contact details you’re using are still accurate.
- Make sure that you have agreed terms with your clients and customers in advance of supplying your goods or services. It’s a good investment to have your terms reviewed by a solicitor so the you can rely on them should you need to.
- Make it easy for your customers to pay you! There are lots of ways to streamline the process for them, many of which are listed here.
A robust Credit Control process is essential to late payment success.
Without chasing non-payment, it’s likely the situation will only worsen. Check out our ‘Ten Top Tips’ for debt collection here.
Remember though that you don’t have to do it all yourself! Apps like Chaser are extremely sophisticated now, and can save you hours of admin every week. It also removes the dread many business owners experience when they know they need to call customers to chase for money. The system takes care of it all, and can be customised to suit your tone of voice and preferred process.
If your credit control has got out of hand, or you’re struggling with cash flow issues please do get in touch. There are lots of ways to improve things, and in some cases very quickly too.