Small businesses 'can help themselves when it comes to late payments'

News Article - Friday, August 08, 2008

filed under: Business

Dealing with late payments can make it difficult for small businesses to control costs, so Businesszone have been looking into how companies can protect themselves.

Speaking to the website, Martin Williams, managing director of credit management specialists Graydon UK, said: "Small businesses have got to overcome this good old British reticence to make a fuss."

He pointed out there is legal redress for companies who do not receive payment on time through the Late Payments and Commercial Debts (Interest) Act.

However, Mr Williams added there are a number of things firms can do before it gets to that stage.

He suggested spreading business around to avoid the possibility of being landed with one big, bad debt and ensuring terms and conditions are clearly specified so companies know exactly how long they have to pay a bill.

Last month, the Federation of Small Businesses said large companies were affecting business performance among smaller firms by delaying invoice payments and imposing new terms and settlement fees.

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