Welcome!

Blog Feed Post

Majority of businesses wait more than 90 days for payment as ‘toothless’ regulations criticised

Sage research reveals late payment culture hitting SMEs

Newcastle, 15th January 2014: Nearly two thirds of businesses have experienced late payments of 90 days or more in the last six months, a shock study by business software and services provider Sage UKI has found.

Bosses of small and medium sized firms across the UK also gave a damning verdict for the Prompt Payment Code, established by Government in 2008 to tackle late payment, with only 5 per cent classing it as 'effective' or 'extremely effective'.

An overwhelming majority classed the code as 'ineffective' (38%), or 'extremely ineffective' (16%). The remaining 41% said they had not heard of the code, which points towards a systematic failure of the Government to get to grips with late payment.

The survey of nearly 600 business owners also discovered that as a result of late payments:

  • One in ten (11%) suffered major cashflow difficulties. A third (33%) said they had experienced minor cashflow problems
  • A knock-on effect in the supply chain, with 14% of firms unable to pay their own suppliers
  • One in 40 firms (2.5%) were late paying wages to staff

Big businesses are the worst offenders for late payments, according to 45% of respondents. This was followed by small businesses (16%), the public sector (13%), and individuals (8%).

"It's time for the Government to roll up its sleeves and get on with clamping down on the notorious late payers which are starving smaller firms of cashflow," said Lee Perkins, Managing Director of Sage UK and Ireland's Start-up and Small Business Division, commenting on the findings.

"British businesses have given a damning verdict for the Prompt Payment Code which has proved toothless and ineffective. There has been plenty of rhetoric, but not enough action and firms are saying they are fed up.

"Thirty days is long enough, but it's absolutely criminal that the majority of firms experiencing late payments of sixty, or even ninety days."

ENDS

Notes to editors
The survey spoke to 572 business owners and decision makers.

In the last six months, businesses said they had experienced late payments over these time scales.

  • 30 days or more, 84% said yes
  • 60 days or more, 72% said yes
  • 90 days or more, 57% said yes

Businesses were asked if they felt the Prompt Payment Code, established in 2008 to help businesses get paid on time, is effective? Respondents answered as follows:-

  • Yes, extremely effective, 1%
  • Yes, effective, 4%
  • No, ineffective, 38%
  • No, extremely ineffective, 16%
  • I don't know/have not heard of the Prompt Payment Code, 41%

Firms were asked, what one thing would you do to improve the Prompt Payment Code? Respondents answered as follows:-

  • Tighter enforcement of the rules, 21%
  • Make an example of firms who do not pay on time, 14%
  • Greater punishment for firms who do not pay suppliers on time, 12%
  • Support from Government to help cash flows, if firms fail to pay, 9%
  • Other, 5%
  • Don't know 39%

Firms were asked, from their experience, who are the worst offenders when it comes to late payments? Respondents answered as follows:-

  • Big business, 46%
  • Small business, 16%
  • Public sector, 13%
  • Individuals, 9%
  • Other, 8%
  • No problem with late payments, 8%

About Sage
Sage has been helping small businesses improve the way they work for over 30 years with award-winning accounting, payroll and CRM software.

In the UK, Sage provides software and services to businesses ranging from start-ups to large companies. This software ranges from accounts and ERP, HR and payroll, forecasting and business intelligence to customer relationship management, e-business and help for start-ups. Services include Excel Support, HR Advice, Health and Safety Advice and training courses. Best-selling packages such as Sage One Accounts, Sage Instant Accounts and Sage 50 Accounts have helped over 830,000 businesses in the UK save time and money.

Source: RealWire

Read the original blog entry...

More Stories By RealWire News Distribution

RealWire is a global news release distribution service specialising in the online media. The RealWire approach focuses on delivering relevant content to the receivers of our client's news releases. As we know that it is only through delivering relevance, that influence can ever be achieved.

Latest Stories
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
From wearable activity trackers to fantasy e-sports, data and technology are transforming the way athletes train for the game and fans engage with their teams. In his session at @ThingsExpo, will present key data findings from leading sports organizations San Francisco 49ers, Orlando Magic NBA team. By utilizing data analytics these sports orgs have recognized new revenue streams, doubled its fan base and streamlined costs at its stadiums. John Paul is the CEO and Founder of VenueNext. Prior ...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera M...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Tintri VM-aware storage is the simplest for virtualized applications and cloud. Organizations including GE, Toyota, United Healthcare, NASA and 6 of the Fortune 15 have said “No to LUNs.” With Tintri they mana...
IoT offers a value of almost $4 trillion to the manufacturing industry through platforms that can improve margins, optimize operations & drive high performance work teams. By using IoT technologies as a foundation, manufacturing customers are integrating worker safety with manufacturing systems, driving deep collaboration and utilizing analytics to exponentially increased per-unit margins. However, as Benoit Lheureux, the VP for Research at Gartner points out, “IoT project implementers often ...
The Jevons Paradox suggests that when technological advances increase efficiency of a resource, it results in an overall increase in consumption. Writing on the increased use of coal as a result of technological improvements, 19th-century economist William Stanley Jevons found that these improvements led to the development of new ways to utilize coal. In his session at 19th Cloud Expo, Mark Thiele, Chief Strategy Officer for Apcera, will compare the Jevons Paradox to modern-day enterprise IT, e...
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...