It's Official! Late Payments Cause Damage

According to recent BCM research, late payments from customers are now a more significant challenge than a year ago ...

Business sectors, including property, services, manufacturing and retail are experiencing this as a growing issue. Other challenges include regulatory compliance and customer demand.

The Chief Executive of ICAEW, Michael Izza said, "The Prime Minister has promised Brexit by 31 October and the overriding priority of his government must be to get a good deal. More than anything else that will give businesses the stability they are crying out for.

However, our members remind us that they face other challenges as well, many of which have little to do with Brexit - such as late payments and the regulatory burden. Robust Government action on these issues could make a real difference to the business environment, especially for SMEs, and would help to restore confidence and momentum."

The researched offered the following key findings:

The BCM's Confidence index suggested that the UK may see a growth of just 0.1% in Q2 and 0.2% in Q3. There was definitely a boost in Q1, as businesses increased their stocks in preparation for a 'No Deal' Brexit on 31 March, but growth in the rest of 2019 looks to be rather subdued.

Combines this with very low (or even negative) confidence and this points to weak growth in Q2 and Q3. Additional Government spending post-Brexit, combined with possible tax cuts may improve both consumer and business confidence.

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