Late Payments: In Keir Starmer We Trust?

Late payments are one of the biggest threats facing small businesses today, costing an average of £22,000 annually and contributing to 50,000 business closures each year.

To address this ongoing issue, the Labour Government has announced a crackdown on late payments, with plans to introduce measures that will hold large firms accountable. As part of this initiative, new regulations will require large companies to report their payment practices in annual reports, aiming to enhance transparency and prevent small businesses from being pushed to the brink by delayed payments.

While these measures sound promising, it’s important to be cautious.

Don’t hold your breath waiting for the government to solve your late payment issues. Late payments are happening right now, and the reality is that the system won’t change overnight.

52% of small firms in the UK suffer from late payments every quarter. This means roughly 2.6 million small businesses face this issue regularly, making it one of the most significant challenges for SMEs.

So, how do you protect your business against bad payers?

One of the best solutions available is to have an invoice factoring facility in place. Let’s say a client drags their feet on paying you for 60 or even 90 days. While you wait, your bills and staff still need to be paid. With invoice factoring, you can convert unpaid invoices into cash within 24 hours, providing a safety net that ensures slow payers don’t disrupt your cash flow.

You don’t have to use it every month or for every invoice, but having this facility in place means that bad payers won’t cripple your business when they inevitably show up.

Want to learn more? Let’s chat about how invoice factoring can keep your business running smoothly and give you the peace of mind you need to focus on growth, not chasing payments.

Looking for urgent advice? You are always welcome to call me direct on my mobile: 07710466166