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
Extreme Computing is the ability to leverage highly performant infrastructure and software to accelerate Big Data, machine learning, HPC, and Enterprise applications. High IOPS Storage, low-latency networks, in-memory databases, GPUs and other parallel accelerators are being used to achieve faster results and help businesses make better decisions. In his session at 18th Cloud Expo, Michael O'Neill, Strategic Business Development at NVIDIA, focused on some of the unique ways extreme computing is...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
Every successful software product evolves from an idea to an enterprise system. Notably, the same way is passed by the product owner's company. In his session at 20th Cloud Expo, Oleg Lola, CEO of MobiDev, will provide a generalized overview of the evolution of a software product, the product owner, the needs that arise at various stages of this process, and the value brought by a software development partner to the product owner as a response to these needs.
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In the first article of this three-part series on hybrid cloud security, we discussed the Shared Responsibility Model and examined how the most common attack strategies persist, are amplified, or are mitigated as assets move from data centers to the cloud. Today, we’ll look at some of the unique security challenges that are introduced by public cloud environments. While cloud computing delivers many operational, cost-saving and security benefits, it takes place in a public, shared and on-demand ...
In his session at @ThingsExpo, Sudarshan Krishnamurthi, a Senior Manager, Business Strategy, at Cisco Systems, will discuss how IT and operational technology (OT) work together, as opposed to being in separate siloes as once was traditional. Attendees will learn how to fully leverage the power of IoT in their organization by bringing the two sides together and bridging the communication gap. He will also look at what good leadership must entail in order to accomplish this, and how IT managers ca...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
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 Outlyer, a monitoring service for DevOps and operations teams, 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. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at @ThingsExpo, Steve Wilkes, CTO and founder of Striim, will delve into four enterprise-scale, business-critical case studies where streaming analytics serves as the key to enabling real-time data integration and right-time insights in hybrid cloud, IoT, and fog computing environments. As part of this discussion, he will also present a demo based on its partnership with Fujitsu, highlighting their technologies in a healthcare IoT use-case. The demo showcases the tracking of pati...