UK businesses lose millions in late payments

Up to £20 million is lost every year by UK businesses because of late payments, according to recent research by the payments group Prompt Payer. Read original article

And of all the UK businesses that go insolvent, at least 25 per cent do so because invoices are paid late, according to statistics from the Federation of Small Business.

Since the Late Payments Act came into force in 1998, businesses take an average of eight more days to pay their invoices, figures from the Federation of Small Business show.

Mark Flower, managing director of Prompt Payer, said: "Late payment affects every company large and small, harming reputation and damaging business relationships.

"Survey results highlight the need to place late payment higher on the agenda, encouraging companies to take an active stand against the issue and put an end to late payment once and for all."

Companies must take responsibility for their own wellbeing and protect their business by familiarising themselves with government legislation, Mr Flower added.