Bottomline Technologies’s 2019 Business Payments Barometer surveyed some 400 financial decision makers in the UK, see full write up here, and reported on the Future of Payments in the UK. In the payments insights, they found that “92% of UK financial decision makers admit to paying suppliers late”. The reasons for paying late varied as the chart below shows:
Source & Copyright©2019 - Bottomline Technologies
These results make it clear that Duty to Report (DTR) regulation introduced in 2017, requiring businesses to report on payment practices, is doing little to curb late payment behaviour.
Solving the late payment problem
Bottomline Technologies point out that:
- Accounts Receivable cloud-based solutions “for distributing and tracking invoices electronically introduces the need to manage data in real-time, and improves the likelihood of getting paid without undue delay.”
- Accounts Payable automation solutions “make it easier to process and approve invoices quickly and flexibly. Efficient and timely invoice approval then opens-up opportunities for businesses to partner with finance providers to put in place early payment programs.”
CTMfile take: Paying late intentionally is destructive, particularly for SMEs.
The WSJ ignores damage late payments do to suppliers
Delaying payments to suppliers to free up working capital is nothing new but can put smaller companies under huge pressure
Time for change of attitude on late payments
A payment report by Intrum finds that 1.69 per cent of annual revenue had to be written off due to non-payment in the past 12 months
European Commission tackles late payments in food supply chain
Late payments are a scourge throughout business supply chains worldwide. Now the European Commission has announced action to ban unfair trading practices in the food supply chain