Due2Pay is the new way to get invoices paid on time

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) August 12, 2009 --

Late payment ripple effect impacting on over half UK businesses Late payment of invoices in UK businesses is a having a dramatic ripple effect throughout the business community. This affects more than half of UK businesses and costing them nearly £2 billion each year. More and more businesses are stalling payments in order to bridge the late payment from their own customers. The late payment to their supplier forces further late payment down the chain. This late payment gap has been recognised to be the result of differing market forces. a) Some companies are using the economic climate to feather their own nest by late paying their suppliers to maximise the amount of time they can keep money in their own bank. They can use this as cheap finance. This has been “accepted business practice” for many a year b) Unfortunately for others, some may be part of the ripple effect. Because their invoices have not been paid or are being paid late, they are forced to use the same practice with their own suppliers, further adding to the ripple effect. Method of dealing with this are many and growing, debt collection agencies are somewhat a last resort with solicitors' letters having some impact. Keeping close checks using organisations such as Dunn & Bradstreet, Riskdisk and DUE2PAY is important not only when taking on new business but also monitoring those you are currently doing business with. New research, conducted among 876 business leaders for independent invoice financier Bibby Financial Services, shows that 2.38 million* (53 per cent) UK business owners or managers are stalling payments to other parties in a bid to bridge the late payment gap. With 12 per cent of these businesses spending three days or more per month to recover payments, the potential cost to the economy is huge. The figures highlight this ripple effect and the number of businesses that can be hit by the late payment chain. Indeed, for 1.35 million (30 per cent) UK businesses, just one late customer payment can have a large impact on payments to all subsequent suppliers. And, worryingly, for half a million (12 per cent) businesses one late payment can affect everyone they do business with. The research reveals 52 per cent of UK business owners are spending more time this year chasing late payments than last year, costing vital time and money at a crucial stage for the UK economy. This is supported by figures from Bacs released earlier this year which showed SMEs were owed 25.9 billion after late payments increased by 40 per cent on the previous years amount of 18.6 billion.

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