There are many potential problems associated with running an enterprise and late or non-payments among debtors is one of them. Thankfully, by making the most of the credit protection and credit information services now available, firms can limit these difficulties.
Commenting on the issue of late payments, the Institute of Credit Management (ICM) has stated that it is one of considerable concern for small organisations.
Recently, the institute, which represents the credit management profession and has been in operation for more than seven decades, added its support to an initiative conceived by the Forum of Private Business to tackle the problem of late payment.
ICM chief executive Philip King put his signature to a letter to business minister Mark Prisk calling for a clear and detailed plan from the coalition government to help small enterprises improve their cash flow, create employment and drive economic growth.
In total, more than a dozen business leaders have joined the campaign.
Commenting on the matter, Mr King remarked: “Late payment continues to be a major problem for small businesses and what is needed is a more co-ordinated and consistent message from government on how it should be tackled.”
The letter specifies a number of actions the government could take, including strengthening the Prompt Payment Code and requesting firms to sign up to this pact by making it an ‘opt out’ as opposed to an ‘opt in’ arrangement.
However, Mr King also noted that it is not only up to the state to engage with this issue. Companies must also help themselves, he stated. The expert said: “The onus cannot all be on the government. Small businesses could be much more proactive in trying to minimise the impact of late payment via measures such as improved credit management.”
As part of this, enterprises may wish to take advantage of credit protection and credit information services to a greater extent.
Source: http://www.icm.org.uk/home/icm-news/643-icm-supports-industry-drive-to-tackle-late-payment