News Article - 23 May 2012
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Small business cashflows are being affected by the recent credit crunch and experts suggest that the problem is worsening.

According to both the British Chambers of Commerce (BCC) and the Federation of Small Businesses, the credit crisis is spreading and "late payments are becoming a growing problem" for members.

"Larger companies have a responsibility in a slowing economy to pay suppliers promptly," a statement from the BCC said. "Smaller firms need to know when they will be paid and should not be mucked around by having payment schedules arbitrarily changed."

Small business leaders are due to meet with government officials to look at ways of tackling the growing problem of late payment, with many smaller firms crippled by customers failing to pay on time.

The Forum of Private Business has placed the issue on the agenda for its next meeting on May 9th 2008 and small businesses are advised that SME accounting software can ensure they monitor late payments closely.

A recent report from Ernst & Young revealed that a total of 114 profit warnings have been issued by British companies during the first quarter of this year, the Times reports.

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