Lame excuses affecting businesses, Cumbria law firm reveals

by Gary West

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An expert in debt recovery has revealed the top excuses for late payment, following research by Bacs Payment Schemes Ltd.

Sharon Walker
Sharon Walker

Sharon Walker, a debt recovery solicitor with Napthens, a law firm with offices in Penrith and Kendal, said that the top five excuses for late payments reported by Lancashire and Cumbria businesses are that, the invoice hadn't been received, there is a dispute with the invoice, the payment run isn't due, and even that there was no one to write a cheque, or that until a company gets paid themselves, they can't pay the bill.

Figures released from the research carried out by Bacs Payment Schemes Ltd, the company behind Direct Debit, showed that small to medium enterprises (SMEs) are owed a total of £14.2b.

Ms Walker said: "This is an astonishing figure, and even though it’s down on previous years, still represents a huge shortfall for businesses which often cannot afford this kind of debt hanging over them.

"The statistics from Bacs show that of the 1.7m SMEs in the UK, around a third wait longer than agreed terms of payment."

She added: "Companies must then spend time chasing these payments, which have staffing and financial implications, and may even result in bankruptcy in extreme cases.

"Businesses facing these kinds of pressures should consult their advisers as soon as they can to prevent the issue getting out of hand."

Napthens provides legal services to businesses and individuals, and employs around 240 staff with offices also in Preston, Blackburn, Southport, Blackpool and the Fylde.

Thursday, August 3, 2017 at 8:58AM
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