Simona
13-04-2014, 07:40 AM
The topic of late payments is one often discussed in our profession.
We know it can cause problems in the sustainability of our business, cash flow, inability to honour our Direct Debits for the business and, in some cases, also credit ratings issues.
We all deal with the late payments in a different way...the Federation of Small Businesses has some very useful guidelines
The document also covers payments from LAs
The whole document is one that has extremely useful information and I am sure will help us run our small businesses
I would print and keep alongside our contracts.... please look at page 5 in particular under the 'proactive small business actions and recommendations' where it recommends a contract and a Prompt Payment Code...I find this very useful rather than a 'late payment policy':
All transactions should be underpinned by a contract.
This helps in confirming payment terms and penalties if payments are late.
This can help in professionalising the business and can be adapted to each transaction.
Further help on contracts can be found the Prompt Payment Code website
I hope you find this useful...it may lead us to reflect on the worth of becoming members of FSB.
http://www.fsb.org.uk/policy/rpu/london/assets/late%20payment%20july%202011.pdf
We know it can cause problems in the sustainability of our business, cash flow, inability to honour our Direct Debits for the business and, in some cases, also credit ratings issues.
We all deal with the late payments in a different way...the Federation of Small Businesses has some very useful guidelines
The document also covers payments from LAs
The whole document is one that has extremely useful information and I am sure will help us run our small businesses
I would print and keep alongside our contracts.... please look at page 5 in particular under the 'proactive small business actions and recommendations' where it recommends a contract and a Prompt Payment Code...I find this very useful rather than a 'late payment policy':
All transactions should be underpinned by a contract.
This helps in confirming payment terms and penalties if payments are late.
This can help in professionalising the business and can be adapted to each transaction.
Further help on contracts can be found the Prompt Payment Code website
I hope you find this useful...it may lead us to reflect on the worth of becoming members of FSB.
http://www.fsb.org.uk/policy/rpu/london/assets/late%20payment%20july%202011.pdf