Small and medium sized businesses in the UK transport and logistics sector are owed £727 million on any given day due to suppliers and customers failing to pay on time.
According to Barclays Local Business annual Late Payments report on a typical day, transport businesses are thousands of pounds out of pocket as a result of suppliers or customers failing to pay during the standard 30-day invoicing period.
John Davis, marketing director for Barclays Local Business said: "It's concerning that late payments are on the rise."
Over one-third said it was a threat to their survival.
Davis added: "The businesses that will survive and thrive during the downturn are taking late payments seriously."
The report also found that firms spend on average 1.3 hours a day chasing late payments
Top tips on tackling late payment
- Credit check your customers.
- Go electronic: encourage your clients to pay you electronically, rather than by cheque
- Early reminders: don't leave it until the last minute to chase customers or suppliers who haven't paid
- Sort your system: Agree terms of payment at the start of all contracts to avoid any confusion, and monitor your payment system regularly so overdue invoices are quickly identified
- Manage your own finances: to save time, ensure you have online and telephone banking set up.
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