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Businesses doubtful about improvements to the late payments culture

UK business owners don’t believe that the recent appointment of the small business commissioner will make a change to the damaging late payments culture.

The government appointed the new small business commissioner, Paul Uppal, earlier this month. A former Conservative MP, he is a small business owner himself, running a real estate company.

He was appointed in order to provide valuable advice to UK SMEs, focusing on improving the country’s supply chain and minimising late payments.

However, only two percent of businesses believe that he will be able to make any significant changes, due to the scale of the issues surrounding late payments in the supply chain.

Overdue invoices are affecting small businesses around the country, with some companies waiting up to six months for invoices to be fulfilled.

The latest research found that businesses are currently waiting on £45 billion in late payments. This equates to a huge £16,250 per company, a figure that can harm a business with limited cash flow.

Independent businesses are more vulnerable to the damage caused by late payments. Cash flow may be limited, and they don’t have the cushion of available money that larger chains can rely on.

Measures that businesses would like to see introduced to combat the late payments culture include compensation for overdue invoices. They would also like a code of conduct to be put in place, and some have even suggested publicly naming companies that are known to pay late.

In the meantime, some independent businesses are choosing to combat problems caused by late payments by sourcing alternative finance.

As bank loans require a long and detailed application process, a cash advance is the perfect solution for those with a cash flow problem. It’s simple to apply, and you can receive the funding you need in as little as 72 hours!

If your business needs urgent extra funding due to late payments, Quick Capital can help. We’re dedicated to helping independent businesses to fund their growth, and can help you improve your cash flow at a difficult time.

Get in touch with one of our friendly advisors, to find out how a cash advance can help your business with late payments.

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