A group of UK organisations and industry bodies have written to the business and enterprise minister, Mark Prisk, urging him to address the problem of late payments which are causing great financial struggle for smaller companies, and even putting some out of business.
A recent UK survey showing that 76% of business owners said they feel the government is not doing enough to protect UK businesses from late payments.
Possible resolutions to the problem include suggestions to bring the EU Late Payment Directive forward to 2012 therefore making 30-day payment terms mandatory, and preventing larger companies from changing the terms of their payments without contractual agreement. This in turn is expected to put invoice and AP automation solutions in the spotlight, to help provide companies with the tools they need to avoid such penalties.
Research suggests that small and medium-sized businesses in the UK are owed £33.6 billion in outstanding invoice payments, the highest figure since records began.
Read more about this issue at: http://www.smallbusiness.co.uk/channels/small-business-finance/news/1679428/group-unite-to-take-on-late-payment.thtml