Business

BUSINESS SUPPORT GROUP: SOUTHWARK SMALL BUSINESSES MUST BE VIGILANT OVER PAYMENTS

30 April 2009

Business Link in London, a business support service for businesses in the capital, is encouraging Southwark's small businesses to be vigilant in making sure they receive payments they are owed.

The warning comes as increasing numbers of small businesses report difficulties with significantly delayed payments or only partial payment for services. 

Andy Berrow, regional manager at Business Link in London, said: "As the recession starts to bite, we are hearing from some suppliers that they are not being paid on time and in full. “This is a worrying trend. It is incredibly important that small businesses in Southwark chase they payments they are owed and don't accept this sort of behaviour from other companies." "If they let this slip, they could face serious consequences for their own business," he warned.

There are many small steps small businesses can take to ensure they get paid on time and manage their cash flow properly - including getting support and advice from Business Link in London advisors.

Mr Berrow continued: "Following these simple steps will help many small businesses avoid the potential pitfalls of late or partial payments. Small businesses often operate on small margins, so ensuring a good, stable cash flow is central to success through the recession."
"It is good practice to encourage clients to clear all difficulties with delivery before the due date.  These may include disputes about numbers delivered or damage to goods in transit."

TOP TIPS FOR GETTING PAID ON TIME
1: Clearly state your terms of payment on your invoices
2: Having stated those terms enforce them
3: Keep track of who you are supplying and when payment is due
4: Invoice regularly and keep electronic copies to speed up the process.
5: Seriously consider stopping supplying businesses that have yet to pay outstanding invoices
6: Check how the businesses you supply are doing and if there are any problems

For further information visit www.businesslink.gov.uk/london or call 0845 6000 787.
Business Link in London is a free and impartial business advisory service available to anyone starting up or running a small or medium sized business. The service is available 24 hours a day, 7 days a week through a dedicated telephone enquiry line and website or face to face at an event, local business surgeries or at your premises.

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