Are late payments an unintended side effect of the pandemic?

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Traditionally Britain’s retailers should be gearing up for a busy Christmas season, but it seems Christmas 2020 is looking anything but normal. Just as the business community was hoping to recover, the city’s such as Manchester and Liverpool have been forced back into lockdown measures.

Research from Previse suggests retailers could be hit with late payments:
“Previse’s research shows that in March this year, late payments almost doubled compared with the year before and continued at high levels throughout April as lockdown took hold.”
The length of time it took small suppliers to get paid was unacceptable before the pandemic, now it is only exacerbated with economic uncertainty.

Every year in the UK, 50,000 businesses are driven to bankruptcy while waiting for late payments. Effective cash flow is going to be so important over the next few months, businesses can support each other by paying promptly and not stretching out payment terms.

How is your business preparing for the Christmas period?

#cashflow #latepayments #bankruptcy

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