The Experian Late Payment Index shows businesses in the UK paid their bills an average of 25.2 days late in Q2 this year.
Larger businesses with more than 500 employees were worst, paying 35.1 days late.
As we all know, late payments lead to cashflow crises which ultimately force some businesses to fail.
Thankfully the UK government is finally doing something about it and has announced plans to bring forward implementation of the EU Late Payment Directive from 2013 to the first half of 2012.
It will make 30 days the standard while payment terms of more than 60 days could be outlawed. It could also give small businesses the power to charge eight per cent interest on overdue invoices and a £35 fee for costs.
Apart from not having money which you are owed and the potential consequences of this, the late payment culture also damages relationships, causes undue worry and wastes seemingly endless time as you chase debtors.
A much better use of your time, of course, would be getting expert advice on dealing with bad debt, so Caerphilly Business Forum has invited Robyn Hughes from HSJ Accountants to our Business Breakfast on Wednesday October 19 at Tredomen Business and Technology Centre in Ystrad Mynach.
He’ll be offering advice on how to avoid bad debts by using payment terms, credit terms, credit checks and flexible payment options and providing insight into planning for bad debts and DIY debt recovery.
And Steve Wade from the Cardiff Office of Begbies Traynor will also be on hand to cover questions on insolvency.
The event is once again free to members and just £5 to others which is redeemable should they join on the day.
So if you don’t want to wait for the new legislation to kick in, join us on October 19. Full details are on our website.
Chairman, Caerphilly Business Forum
For more information about Caerphilly Business Forum and its events call 029 2125 1395 or email Natalie@cbforum.co.uk