Overcast

Overcast

max temp: 19°C

min temp: 15°C

ESTD 1874 Search

East Anglia: Cash flow problems on the rise for smaller firms, says Lloyds TSB Commercial survey

06:00 27 February 2013

Roger Brown of Lloyds TSB Commercial Finance

Roger Brown of Lloyds TSB Commercial Finance

Archant

MORE small and medium-sized firms in the eastern counties are suffering from cashflow problems compared with a year ago, according to a new survey.

shares

More than one-third (35%) of businesses responding to the latest twice-yearly Business in Britain survey by Lloyds TSB Commercial Finance admitted to suffering cashflow issues, compared with just over a quarter (26%) 12 months ago.

Among the firms experiencing difficulties with cashflow, nearly two-thirds (61%) said that late payments for goods or services supplied were to blame.

Although this figure is slightly down on the 63% recorded in the survey a year ago, late payment remains the largest single cause of cashflow difficulty by a wide margin, with lack of demand the next biggest factor on 36%.

Lloyds TSB Commercial Finance, a provider of asset-based lending and invoice finance, is now urging companies to sign up to the Prompt Payment Code to ease the pressure of late payments on small and medium-sized enterprises (SMEs).

Roger Brown, regional director for Lloyds TSB Commercial Finance, which has itself signed up to the code, said: “There are several things companies can do to ensure that late payments don’t affect their cashflow. Prevention is better than cure, so carrying out background checks on customers and setting out clear payment terms at the beginning of the relationship can help avoid any problems before they begin.

“In addition, widespread adoption of the Prompt Payment Code will mean that companies treat suppliers fairly, and late payments will become less endemic.”

Under the Prompt Payment Code, established by the Institute of Credit Management and endorsed by the Government, signatories commit to pay suppliers on time and to encourage good practice in other businesses.

shares

0 comments

Ashley Gogan, Bedford Lodge

A four-star hotel in Newmarket has appointed a new face to head up its conference and events service.

Sheepen Place office development scheme at night - artist's impression

Proposals have been submitted for two new office buildings planned for central Colchester.

Greene King chief executive Rooney Anand, left, shaking hands with Mike Tye, chief executive of the Spirit Pub Company, outside Spirit's headquarters in Burton uponTrent following the sale deal.

Jobs are at risk at Greene King following a major acquisition earlier this year.

EDF workers are unhappy over pay.

Hundreds of workers at energy giant EDF are to stage a 24-hour strike in a row over pay.

Amos Smith who is launching a new yoghurt called Mossy's from a secret family recipe.

A popular yogurt made to a secret family recipe has been revived by a young food entrepreneur.

Land next to Burger King is for sale

Tesco, Mothercare and Toys R Us could soon have a new neighbour at Copdock Mill

A city worker looks at a stock ticker screen at the London Stock Exchange in the City of London.

Volatile stock market conditions took their toll again today as the FTSE 100 Index plunged after sharp gains in the previous session.

The Director General of the British Chambers of Commerce, John Longworth, has met with the Suffolk Chamber of Commerce in Ipswich to hear of their work delivering support to firms across the region.

The Director General of the British Chambers of Commerce, John Longworth, met with the Suffolk Chamber of Commerce in Ipswich to hear of their work delivering support to firms across the region last week.

Sainsbury's supermarket was only one of Britain's big four supermarkets to grow sales in the last three months - but still saw its number two spot in the sector retaken by Asda.

Sainsbury’s was the only one of Britain’s big four supermarkets to grow sales in the last three months - but still saw its number two spot in the sector retaken by Asda, according to latest industry data.

Family law expert Georgina Hall, now a partner at Prettys

East Anglia law firm Prettys, which has offices in Ipswich and Chelmsford, has announced the promotion of family law expert Georgina Hall to partner, bringing the total number of partners in the firm to 10.

Most read

Most commented

Topic pages