While the world’s attention is focused on the conflict between Russia and Ukraine, about 440,000 or 8% of the small businesses in the United Kingdom face insolvency from cash flow problems arising from higher operating costs and difficulties in getting invoices paid on time.
In this podcast, Liz Barclay, UK Small Business Commissioner, and RIABU’s Mark Laudi, discuss the importance of the prompt payment code introduced by the UK government in 2008 to encourage large companies to commit to good payment practices, and how, barring a few outliers, the industry average of payment days has been improving. But Liz believes that more needs to be done. She emphasizes that a company’s board of directors have an ethical responsibility to pay invoices on time. To safeguard the sustainability of their suppliers, it must be a strategic decision rather than an operational one. This, in turn, helps all stakeholders because it enhances the supplier's bottom line, which attracts more investors and qualified workers.
On the other hand, small businesses or suppliers lack negotiation skills and make a variety of invoicing errors. Liz points out that while digital technology has helped many small businesses save time and minimise the number of invoicing errors, it isn't the ultimate solution for getting paid on time. They must be bold and confident enough to propel their business forward by negotiating better payment terms with their customers.
Why understanding your customer’s internal payment process is vital
Negotiate your contract price at acceptable profit margins
Customer intimacy is about nurturing relationships at all levels
How UK SMEs can deal with rapidly rising input costs
Borrowing money can’t solve SMEs’ cashflow problems anymore, but operational efficiencies can
If you want customers to follow payment terms, internal stakeholders need to sing from the same hymn sheet
How clear communication can get you paid on time
The important link between environmental sustainability and cash flow
Outlook for SMEs in China, UK, and eastern Europe
More UK companies are going bankrupt
How to reset your customer relationships for 2022
Singapore vs Hong Kong: Which city‘s SMEs are better at getting paid on time?
Lessons for suppliers from the Evergrande saga
The true cost of late payments
Tech is not a silver bullet for invoicing problems
Why so many businesses fail in their first year
Using technology to better your customer relationships
How to stop draggy payments
We speak to someone who actually gets paid on time!
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