The ‘endemic’ late payment culture severely inhibiting many SMEs and small businesses would soon be ended if cheques were ditched, the British Chambers of Commerce (BCC) has suggested.
There was a 2018 deadline set for cheques to be axed, but this was scrapped earlier this year when the UK Payments Council announced that cheques would continue for as long as customers were using them.
New research by the business lobbying group found that more than nine in 10 firms are affected by late payments and, while 66% of firms are normally paid in cheque format, only one in five favoured the cheque as their preferred payment method.
The BCC was adamant that the 2018 deadline should be reinstated and said in a statement: “While many businesses still use this method of payment, it can have negative effects on other businesses' cashflow".
Invoice Finance as late payment solution
Many small businesses and SMEs are affected by late payments, which can severely inhibit cashflow and prevent business growth and development.
However external finance solutions exist which can help small businesses and SMEs unlock vast amount of cash they have tied up in unpaid invoices.
Having an invoice finance facility with Skipton Business Finance could help your business prosper and see all the benefits of increased cashflow.
"Skipton Business Finance have offered excellent levels of flexibility and understanding during a tough period for our company" - Brian at a household products supplier in East Yorkshire