Businesses seek protection from late payment
Nov 08 2011
Many companies look to government protection against late payments
Two thirds of credit professionals want the government to protect small businesses from late payments, research finds.
According to a survey by the Institute of Credit Management, more than a third (36 per cent) of credit control personnel are chasing late payments up to three days sooner than they were a year ago, up slightly on 2010, with 20 per cent chasing four days sooner.
Some 86 per cent of businesses say they use credit and business data checks for new customers and suppliers, compared with just 37 per cent last year.
Late payments remain a major issue for businesses, which accounts for the sharp increase in the use of data checks and ongoing monitoring, as firms keep a closer eye on new and existing customers and suppliers.
ICM chief executive Philip King says, ‘Late payments continue to put businesses under added strain, in an already fragile economy. The survey shows that businesses are struggling to tackle late payments and the majority would like government support, but it is also up to professional credit managers, and specifically members of the ICM, to take the lead in reducing the impact of bad debt and improving levels of best practice.’
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