Legislation brought in to combat late paying clients and companies appears to be failing those it was meant to safeguard the most - micro businesses.
Such is the verdict of a study released yesterday by Siemens Financial Services (SFS), which probed the accounts of thousands of UK companies.
Obtained by The Financial Times, the study reportedly found that delayed payment for services is a greater problem for owner-led firms today than it was three years ago.
In fact, small businesses had to wait an average of 69 days in 2004 to receive payment, but figures for 2006 show the waiting time has increased to 80 days.
In contrast, owners of mid-sized and large companies cited their "days sales outstanding" as holding steady over the same period at 62 days and 47 days respectively.
Reflecting on the findings, a spokesman for SFS said "small firms are suffering" because their larger clients are using competitive pressure to extend payment terms.
Jan 30, 2007
Email this article
Printer friendly page
Previous Page
