Half of UK businesses have suffered a bounced cheque in the last year, finds the Better Payment Payment Group.

A survey by the Better Payment Practice Group (BPPG) has found that nearly half of UK businesses have suffered a bounced cheque over the last 12 months. Businesses with 10 to 49 employees are worst affected, with nearly two thirds admitting that they have received a bounced cheque.

The poll, which was held on this website, asked companies whether they had received a bounced cheque in the past year. Of the 552 respondents, 46% admitted that they had. The survey also asked respondents how many employees they had. Businesses with 10-49 employees had suffered the most, with 61% having received a bounced cheque. However, larger companies had also been affected, with 52% of medium companies, those with 50-249 employees, and 57% of large companies, those with more than 250 employees, stating that they had received a bounced cheque in the last 12 months. Micro companies, with 0-9 employees, fared best, with 38% suffering from a bounced cheque in the past year.

Clive Lewis, member of the Better Payment Practice Group and Head of SME Issues at the Institute of Chartered Accountants for England and Wales, said: “The survey highlights the fact that bounced cheques are a real problem for businesses. It is interesting to note that micro businesses suffer fewer bounced cheques than larger companies. This may be because, due to their smaller client base, micro companies are able to gain a more detailed knowledge of their customers. Building strong relationships with customers, particularly the major purchasers, is important as it can be an excellent way to encourage priority payment.”

He continued: “The BPPG also advises that it is essential to credit check new customers before issuing credit and to continue to monitor their payment practices throughout the business relationship. Trade credit is a privilege, not an automatic right, and businesses should not be afraid to refuse credit and ask for cash on delivery if they have any concerns about payment.”

Further advice on credit checking can be found by clicking here.

You can keep up to date with the Better Payment Practice Campaign by sending us an email