It has been revealed that businesses are still facing lengthy delays waiting for their invoices to be paid, with the most common period lasting an average of 74 days. This article from Business Matters breaks down the payment periods by industry which makes for some interesting reading. Invoices dated today are not likely to be paid until 3rd February 2018, 44 days longer than typical 30 day payment terms.
It is important for SMEs to be supported during times of late payment. This stall in cash flow can cause detrimental effects to both day-to-day trading and longer term business goals. The voluntary Prompt Payment Code has not yet had the desired impact and more needs to be done to help firms face these challenges.
Most businesses rely on having healthy cash flow to grow, but many small businesses rely on it to just keep operations running day to day.