The UK’s late payment culture has resulted in companies waiting an average of 72 days for invoices to be paid – one day more than a year ago, and on average 11 days longer than when the recession was at its height.
So-called “bans on assignment rules”, which can hamper the growth of smaller companies by preventing them from using invoice finance, are set to change as part of the government’s wider Small Business, Enterprise and Employment Act.
Introduced early in 2015, the new measures will tackle late payment and help smaller companies grow and plan for the future from a more confident financial position.
More than 44,000 British businesses currently use invoice finance – cash up front against the value of unpaid invoices - to fund working capital and mitigate cash flow issues caused by late payments.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now