Late payment can cause misery for businesses (From The Bolton News)

Late payment can cause misery for businesses

3:48pm Wednesday 17th March 2010 in

• Skip social links
• Print
• Email
•  

BUSINESSES which delay paying bills can cause severe problems for other smaller companies, according to a Bolton solicitor.

UK businesses are taking an average of 60 days to pay bills and invoices according to a recent report by Experian and the larger the business the slower they are to pay - creating significant cash flow difficulties for the smaller businesses down the chain of supply.

Paul Hatton, of Bolton-based KBL Solicitors, said: “I anticipate a significant number of local and national businesses will enter insolvency this year, with the result that many of their creditors will not be paid.

“With the economy only barely out of recession, businesses need to remain as diligent as ever with their credit control.”

“Many businesses don’t realise that they are entitled to charge late payment interest of eight per cent on top of the Bank of England base rate and claim compensation.”