Paying late could cost you more in the long run .
Research by the Better Payment Practice Group (BPPG) has found that a quarter of businesses penalise late paying customers by raising prices to minimise the cost of monies tied up in outstanding debts.

The survey, conducted on this website during April, asked businesses if they ever charge a customer more to compensate for them being a late payer. Of the 862 visitors who participated in the survey, 227 confirmed that they do increase their price for customers they know to exceed agreed credit terms.

Commenting on the findings, Professor Robin Jarvis, Head of ACCA’s Small Business Unit and member of the BPPG said: “Too many businesses see their suppliers as an easy means of obtaining free credit and use late payment as a way of easing pressure on their cashflow. Suppliers shouldn’t be afraid to use sanctions such as higher prices, where commercially viable, or statutory interest to enable them to protect their own balance sheet.”

Businesses wishing to send out a firm message to customers that they will not tolerate late payment may benefit from signing up to the Better Payment Practice Code, which can be done by clicking here. This enables them to display the BPPG’s logo on their letters and invoices, signaling their commitment to good credit management practices.

Further information about preventing and dealing with late payment, including a free downloadable guide to getting paid on time, is available by clicking here.

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