0 £0.00
This item was added to your basket
Credit Strategy homepage

Dear visitor,
You are viewing 1 of your 1 free articles

We’ve invested in our content to provide more news, analysis, features, interviews and opinions across a wide range of Credit and Financial Services. Register now to access more of the trustworthy, insightful information that’s on offer.

Register now or Login

Late payments to small businesses “standard practice”

Late payments from clients is “business as usual” for many small business owners, according to research from the Money Advice Trust.

Share on LinkedInShare on TwittereCard

The charity runs the Business Debtline, where nearly half of callers have experienced problems with late payments from customers.


The survey of Business Debtline callers showed that businesses affected by late payments would experience cash flow problems. These problems have a negative impact on the viability of the small business and the personal wellbeing of the owners, too.


Of those surveyed, 82 percent strongly agreed that late payments caused cash flow problems and 58 percent said that late payments was the cause of their financial difficulties.


Some 62 percent of callers who experience late payments said they do so fairly or very often. A further 42 percent spend more than a tenth of their working time chasing late payments, which can lead to negative effects on the business’s productivity.


Joanna Elson OBE, chief executive of the Money Advice Trust, said: “The government has already taken several positive steps on late payments, including requiring mandatory reporting on the payment practices of large business, and creating the Office of the Small Business Commissioner.


“Stronger actions are necessary, however, to deliver the scale and pace of change required in payment practices. We need to fundamentally change the culture – so that late payments are no longer seen as an acceptable business practice.”

Share on LinkedInShare on TwittereCard
Add New Comment
You must be logged in to comment. Login or Register to access enhanced features of the website.


Upcoming events

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group