Recent analysis is showing that there was a huge total of 306,078 invoices that were overdue in Northern Ireland in the third quarter of this year, that is up from 286,357 overdue invoices in the 2nd quarter. Over 27,000 businesses reported invoices that were overdue from customers, which will have put many of them under huge strain as they deal with soaring energy bills and the cost of living crisis. The analysis was run by Creditsafe.
Late Payments Can Be The Last Straw For Businesses
Late payments can be a big problem for businesses, many of them are already stretched tight financially, so when they also have to chase payments it can end up being the straw that breaks the camels back and they can end up in administration. Most businesses right now are suffering from reduced demand for their products and services as people are finding they have very little extra income to spend after they have paid their bills. And they are very worried that they cannot turn a profit after paying the high energy bills that they are facing. Late payments only add to the stress and worry.
Delays In Payment Can Have A Serious Effect
Speaking about this issue in an article in the Irish News, James Neill, regional chair of R3, said:
“Late payment is a growing issue in Northern Ireland. Headwinds such as material and energy cost inflation, interest rates and supply issues are heightening the pressure on working capital for many corporates and cash-flow challenges are beginning to surface.
“For small businesses that rely on regular income, even if just one client fails to pay, or there is a delay in payment, that can have a serious effect – and in some cases, may mean they become financially distressed.”
Mr Neill, who heads up advisory services at HNH, added: “I would urge any firms in Northern Ireland worried about the impact of late payments or are worried about their ability to pay their invoices to seek professional advice.
“There are many steps that can be taken to support businesses, but they can only be taken if you move quickly and act before the issue spirals.”
Here at WHR Accountants we help many small to medium businesses with their cash flow to ensure they have as smooth a process as possible. If you need an accountant that can help with a business plan over the next few months then please give our offices a call on 028 3752 2909.