27 June 2008
Late payments could threaten to push some small companies into administration as the credit crunch bites and the flow of cash becomes more critical.
According to a survey of the members of the Forum of Private Business 81% the problem of late payments has worsened in the last year and one third of respondents expressed fears that their business could be in danger of calling in the administrators if the tendency to pay late continued.
A spokesman for the FPB said that it was one of the biggest problems for its members surviving in a late payment culture: "It really hurts when someone just announces that they are changing their payment terms to 90 days from 60 and they still ask for a discount."
Mark Ancell, head of intelligence at Graydon, said that as things became tougher the flow of money did become slower.
"It has got worse as the money is running out for people and they would rather have the funds in their own bank account than pay it out to other people," he said.