Late Payments Cause Ripples Through Supply Chain
Late payments from customers are having a “devastating impact” on the supply chain, prompting many businesses to delay paying their own suppliers in turn, a UK survey found.
Almost half of UK businesses surveyed are holding off paying their suppliers because their customers are late with payments, according to the most recent Late Payment Survey from Hilton-Baird Collection Services.
Late payments adversely affected 88 percent of businesses last year, with many having to boost borrowing and some having to turn away new business as a result, the survey found. In several cases, customers told businesses they were waiting for their own customers to pay.
“The extent to which a single late payment can impact upon the supply chain is a major concern. While it’s obviously going to damage the supplier’s cash flow, it’s clear that many are being left with little option but to fight fire with fire,” Hilton-Baird Collection Services Managing Director Alex Hilton-Baird said.
Hilton-Baird, a commercial debt collection firm, has published a free e-book that offers tips on avoiding and limiting the effects of late payments.
Click here to learn more.
