Invoice payments 'taking longer'

Date: March 31, 2010

Category: Finance for Contractors

Many businesses, professional contractors included, are facing longer waits for invoices to be paid, research has revealed.

A third said customers take longer to pay than a year ago, the figures from Bibby Financial Services show.

Some 48,000 have had to chase an invoice 11 times before payment was made, with many spending several days trying to get what they owe.

These delays could cost small businesses £1.9 billion a year, the finance firm pointed out.

Manufacturing and construction companies face the biggest challenges in getting payments on time.

This trend has to stop, warned Edward Rimmer, chief executive of Bibby.

"Across this nation, businesses are fighting for survival with sustaining a healthy cashflow one of the biggest challenges," he commented.

Mr Rimmer urged firms to carefully monitor their cashflow to ensure they are not caught short if payment takes longer than expected to be made.

In his Budget last week, chancellor Alistair Darling pledge that 80 per cent of government invoices would be paid within five days.

Posted by Sarah Putt