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
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
VeriStor Systems has announced that CRN has named VeriStor to its 2017 Managed Service Provider (MSP) 500 list in the Elite 150 category. This annual list recognizes North American solution providers with cutting-edge approaches to delivering managed services. Their offerings help companies navigate the complex and ever-changing landscape of IT, improve operational efficiencies, and maximize their return on IT investments. In today’s fast-paced business environments, MSPs play an important role...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...