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Only 1% of small firms receive government payment in 10 days
The government's pledge to cut the cashflow problems of small firms by reducing the amount of time it takes to pay trade invoices to 10 rather than 30 days is only being experienced by 1% of SMEs, according to research by credit agency Graydon.
The survey found that just 1% of the companies questioned which supply government agencies are being paid within ten days and 53% were paid within 30 to 60 days.
"It is important that more public sector organisations take the lead and pay their invoices promptly. Every day, the failure of businesses and government agencies to do so decimates many small firms' cash flow in an economic climate where they can least afford it," said Phil McCabe, of the Federation of Private Businesses.
39% of firms received payment within 10 to 30 days and 7% had to wait more than 60 days to receive payment. With the average payment period in the UK currently between 30 to 60 days, these results show that government departments are no different to the private sector in terms of payment practices.
Post Date: March 19th, 2009
The survey found that just 1% of the companies questioned which supply government agencies are being paid within ten days and 53% were paid within 30 to 60 days.
"It is important that more public sector organisations take the lead and pay their invoices promptly. Every day, the failure of businesses and government agencies to do so decimates many small firms' cash flow in an economic climate where they can least afford it," said Phil McCabe, of the Federation of Private Businesses.
39% of firms received payment within 10 to 30 days and 7% had to wait more than 60 days to receive payment. With the average payment period in the UK currently between 30 to 60 days, these results show that government departments are no different to the private sector in terms of payment practices.
Post Date: March 19th, 2009
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