Businesses need to ensure efficient invoicing practices

Date: 19th April 2010

Businesses need to ensure they are running "clear and efficient" invoicing practices to give them the best chance of avoiding late payments.

This is the view of Steve Hughes, economist at the British Chambers of Commerce, following the revelation that 71 per cent of smaller businesses are receiving late payments from other organisations.

A recently-released study from NatWest showed that 71 per cent of smaller businesses have suffered a late payment over the last 12 months.

According to the report, the collective value of the unpaid invoices is currently £62.87 billion.

Mr Hughes said the credit crunch has brought the issue to light but explained firms can take steps to minimise the likelihood of a late payment.

"Businesses themselves need to make sure that they have a clear and efficient invoicing process, with clear and agreed terms of payment with those that they supply," he said.

"The government has [also] made attempts at addressing the problem, with faster payment of public sector bills and enhancing and promoting the Prompt Payment Code."

Posted by Emma Clarke