Click Fraud Protection

Connecting...

Cause of late payments must be treated

Insight | Late payments | Symptoms | ACCA

W1siziisijiwmtcvmdqvmjcvmtivmjcvntavnjuwl2xhdgutcgf5bwvudhmuanbnil0swyjwiiwidgh1bwiilcixmdawedqwmcmixv0

The new government needs to treat the cause of late payments, rather than the symptoms, if it is to solve the issue, according to the Association of Chartered Certified Accountants (ACCA).

It claims that UK policymakers need to "rip up the rulebook" and start again when it comes to how they manage and regulate late payment, with the the key to ending it being to build a financial infrastructure that boosts trade credit.

ACCA spokesman Andrew Leck said that the issue of late payment is "life-threatening" for many organisations in the UK, and its impact on the smallest businesses is most acute.

Those with fewer than 50 employees are typically twice as likely as large corporates to report problems with late payment, but with the right intervention, he says late payment does not have to be a fact of life for businesses.

"At its most basic form, late payment is a form of credit and in an ideal world, where all solvent businesses would have prompt, uninterrupted access to finance from diverse sources, late payment would be very rare," Mr Leck explained.

"With a new government in place, we now have the perfect opportunity to stamp out our culture of late payment by taking a fresh look at the causes."

The Secretary of State for Business, Sajid Javid, has the opportunity to make trade credit regulation more effective and simultaneously end the "scourge of late payment" currently affecting the economy, according to Mr Leck, who says ending late payment has proved to be an elusive goal for governments across the world, not just the UK.

What the new UK administration therefore needs to recognise is that late payment is essentially a demand for credit, and start tackling the problem as such, with the incoming business ministers fully focusing on building a financial infrastructure that boosts trade credit through support of alternative finance and the free availability of credit information.

Mr Leck concluded: "This approach has the potential to be far more effective than the measures currently proposed around improving the legal framework for late payment disputes and ensures that government policy makes a positive difference far earlier.

 


Posted by Jon Aspinell on 11th June 2015

SHARE

LATEST JOBS
W1siziisijiwmtcvmdcvmtavmtavndcvntgvmjy1l1cxc2laaulzswpjd01uy3znrff2twprdk1urxznelv2turrdk5etxhmm2rwy21vdwfulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

IT Manager - Guildford, Surrey - £45,...

Guildford, Surrey

£40000 - £45000 per annum

IT Manager - Guildford, Surrey - £45,000 A well established and successful business within the healthcare industry, i...

READ MORE
W1siziisijiwmtcvmdcvmtavmtavndcvntgvmjy1l1cxc2laaulzswpjd01uy3znrff2twprdk1urxznelv2turrdk5etxhmm2rwy21vdwfulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

IT Manager

Guildford, Surrey

£38000 - £45000 per annum

A leading health care company is now looking for an IT Manager to look after their busy clinic of 60 users. The succe...

READ MORE
W1siziisijiwmtcvmdqvmjqvmtevmzmvndavnty5l21hcmsxlmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

Senior Marketing Executive - £35,000 ...

London, England

£32000 - £35000 per annum

Senior Marketing Executive - London. A well-established business in the property sector is looking for an articulate ...

READ MORE
W1siziisijiwmtcvmdqvmjqvmtevmzmvndavnty5l21hcmsxlmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

Digital Marketing Manager - Sutton Co...

Sutton Coldfield, West Midlands

£30000 - £35000 per annum

Online Marketing Manager - Sutton Coldfield, West Midlands - up to £35,000. An excellent opportunity has arisen for a...

READ MORE
W1siziisijiwmtcvmdcvmtavmtavntavmdavnde5l1cxc2laaulzswpjd01uy3znrff2twprdk1urxznemd2tkrzdk1qttjmmjfoy21zeuxtlmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

Facilities Assistant - London - £12p...

London, England

Up to £12 per hour

Facilities Assistant - Aldgate, London - £12ph. The Ashdown Group has been engaged by a world-renowned global product...

READ MORE
W1siziisijiwmtcvmdcvmtavmtavndcvntgvmjy1l1cxc2laaulzswpjd01uy3znrff2twprdk1urxznelv2turrdk5etxhmm2rwy21vdwfulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mfx1mdazyyjdxq
VACANCY

IT Support Analyst (Mac)

London, England

£28,000 per annum

A multinational professional services business based in London are looking for an ambitious IT Support Analyst with M...

READ MORE
W1siziisijiwmtgvmdqvmtgvmtmvmjmvnduvnza0l1jlbw90zs1taw4ucg5nil0swyjwiiwidgh1bwiilcizmzv4mtcwi25lil1d
Insight

How can you ensure cohesive communication with a team of remote workers?

Remote working is becoming increasingly adopted by organisations across the globe - whether that takes the form of an...

READ STORY

W1siziisijiwmtgvmdevmjqvmdgvntkvmtavndyyl2ltywdlmtqtbwlulmpwzyjdlfsiccisinrodw1iiiwimzm1ede3mcnuzsjdxq
Insight

Can HR tech ease workplace conflict?

Workplace conflict is mostly unavoidable - particularly when businesses hire strong-minded talent with big ideas. Ego...

READ STORY

W1siziisijiwmtgvmdevmtyvmdgvntcvmzcvmtk5l1dlbgwxyi1taw4uanbnil0swyjwiiwidgh1bwiilcizmzv4mtcwi25lil1d
Insight

What to prioritise in your employee experience

The candidate experience has long been valued by employers looking to attract fresh talent. Now, however, companies a...

READ STORY

W1siziisijiwmtgvmdevmtavmtyvmdavntmvmtyzl0ltywdlntatbwluicgxks5wbmcixsxbinailcj0ahvtyiisijmznxgxnzajbmuixv0
Insight

What can HR expect in 2018?

HR departments are set to face many new challenges in 2018, from the technological to the traditional. Among the most...

READ STORY

W1siziisijiwmtcvmtevmjgvmtcvmdevndqvnzivaw1hz2uyni1taw4ucg5nil0swyjwiiwidgh1bwiilcizmzv4mtcwi25lil1d
Advice

From communication to drive: The importance of soft skills

Soft skills are often difficult to quantify, yet they can become an absolute necessity for your business to reach its...

READ STORY

W1siziisijiwmtcvmtevmdgvmtavntqvmzivotuvaw1hz2uxns1taw4uanbnil0swyjwiiwidgh1bwiilcizmzv4mtcwi25lil1d
News

Only one in three workers say their employers offer training

Just one-third of workers report that their employer offers regular training opportunities, a new poll by the Trades ...

READ STORY