It’s not just a United Kingdom problem. Late payments are becoming a hallmark across the globe.
And as our latest tracker shows, in some areas, the trend is worsening.
Consider Ireland, where the Irish SME Association (ISME) said that its quarterly Credit Watch Survey found that payment terms are worsening for smaller firms. Business World noted that the overall terms have slipped from 52 to 55 days, as measured in what are known as credit days. The data shows some more alarming trends, noting that certain verticals are more impacted than others.
That’s not to say the U.K. does not have its own continuing issues. There has come yet another report, which is known as the “changing trends in the purchasing processes of U.K. businesses” and is commissioned by Invu.
Here, the report shows, the pressure continues to bear on smaller firms, long documented in this space. In the latest set of numbers, Invu stated that roughly 60 percent of firms within that country are finding it difficult to pay suppliers on time. As many as one in five have found the struggle to be “a significant problem.”
In the land down under, smaller firms in Australia also have been feeling a late payments pinch, as data released this month from the SV Partners Commercial Risk Outlook Report showed that roughly 9,900 firms are “on the brink of collapse,” as stated by smartcompany.com, and where “experts say business strength is unlikely to improve.”
The problem has also touched India, where one state-controlled coal mining firm is tightening its credit policy and will penalize firms that are delaying payment beyond 15 days. The firm will also stop supply if payments are delayed beyond a month, all in an effort to bring down its payables.