SMEs shy away from charging late payment interest
| Date Added: Wed August 15 2007 |
Why small firms are choosing not to apply legislation designed to protect them against slow payments. A recent survey commissioned by commercial credit agency Graydon UK, has highlighted that 59% of respondents have never charged late payment interest and that only 4% of respondents have always levied a charge.
Perhaps surprisingly, only 16% of those surveyed cited the fear of losing or upsetting the client as the rationale for not claiming late payment interest from their clients. Many companies stated that it was either not 'company policy' or not 'customary in their industry', with a quarter of firms saying they were more worried about the administrative burden of disputes and queries.
Most credit industry analysts, including me, suspected that it was fear of losing or upsetting customers that prevented suppliers from charging for late payment~, comments Martin Williams, Graydon's Managing Director. ~However, it would appear that many companies have still not embraced the idea of demanding their statutory rights to interest, despite it being almost 5 years since the last amendment to the 1998 Act became law. |
|
|
|
 It takes just a minute to apply for your Factoring or Invoice Discounting quote from SME Invoice Finance. For your bespoke Invoice Finance Quote, simply click on the box above. |
 At SME Invoice Finance, we are known for delivering fast, flexible Factoring and Invoice Discounting solutions for growing, cash-hungry businesses. We also deliver a wealth of helpful advice. Click on the box above to access the SME Info Hub. |
 The SME NewsDesk features the latest news stories from SME Invoice Finance, directly relevant to your information needs. We cover factoring and invoice discounting product news, plus a range of topical interest stories for owners of small businesses. |
|
