According to the Bank of Scotland, 10,000 businesses go under each year because of late payment by their customers.
Many small business owners are not aware that there is legislation in place to help them with delayed payments. The recently amended legislation allows you to charge interest until payment is made, whether you had previously informed your customer of it or not.
However, Bank of Scotland spoke to a number of businesses on the issue but 34% of those already knowing of the legislation felt it would not lighten the burden of late payments.
Our view:
If you do not feel comfortable pursuing clients for debts that are owed to you for fear of losing them as clients consider a factoring house.
Learn more about running a business including our Grow Your Business Service in the Accounts Adviser.com.