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 PR agencies often get paid late by their clients - and what to do about it
PwC warns cash conversion crunch is cutting capex
Who should pay bank fees when the customer pays your invoice - you or the customer?
Should you still hope for a cheque in the mail?
Collection matching - how can you chase when you might have been paid
What salary-earning finance people need to know about the entrepreneurs they pay
Brexit, and its impact on payments to small businesses
Assume ignorance before malice
Beware customers who ask you for an invoice before onboarding
Developing a "countdown to delivery"
What is the kindest way to delay paying your suppliers?
Should you give freebies "for the exposure"?
Should you charge interest on overdue invoices?
Should debtors go to jail, or be allowed to restructure?
What if the BPO is separate from your business contact
By the time you activate the lawyer, it's already too late
Scope creep - and how to avoid it
How to chase for payments without looking desperate
Rising level of corporate debt a risk to global economy
No PO, no pay, no work?
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