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Late payments add to the costs burden for SMEs

Small businesses, or SMEs, are the lifeblood of the country and their financial stability is a major factor in keeping the economy moving.

The Prime Minister and the Chancellor have both been trying to hammer home the need for growth as they have attempted to lay out their strategy for business in the UK.

Growth usually covers two areas – the size of the workforce and growth in the productivity of that workforce.

Get the invoicing right

There are a number of factors which can affect growth, like labour shortages, lack of investment in technology and more recently, soaring energy costs and interest rate rises.

But for many SMEs their push for growth can be hit late by payments which can potentially put them at risk. The Federation of Small Businesses has already called on the Government to take action.

Because SMEs tend to be positioned towards the end of the supply chain, they suffer disproportionately from late payments.

Some sensible tips could help speed up payments:

Be friendly if possible and call the customer about a week before your payment is due to make sure they have everything they need and your money will come through on time.

If you are still not getting paid:

Legal action is always a final option, but involves a lot of time and effort, which can affect the running of your business.

Need help with related matters? Contact our team today.

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