This was the title of the FT article talking about Holland & Barrett consistently delaying paying its suppliers on time. The article’s comments provide a facinating insight into the issues SMEs are facing when their invoices are not paid on time.
One FT reader writes: “I dream of getting paid in 27 days. Large businesses use their muscle to dictate terms. More often than not those terms are 60 days, but with a sting in the tail. Its 60 days from the end of the month in which they receive the invoice. They know that most businesses invoice monthly in arrears, so they get invoiced in the first week of the month. So they are getting 90 days credit. This is equivalent to a quarter of a year of turnover that small suppliers have to finance – at rates far higher than the larger businesses could command. Its a utter sham. “
Another FT reader writes: “Small businesses do most of the innovation in this country, and provide most of the employment. Imagine the opportunity the country could benefit from if they suddenly had an extra month or two of revenue in the bank. Not to mention the productivity improvement from reduced credit control departments and all that chasing.”
What can a small to medium size business owner do when faced with an unpaid invoice? Let us know what you think by emailing us at info @ dialogwise.com. We would love to hear your views.