Woman at Business Meeting

The Yorkshire chair of the R3 trade association for restructuring and insolvency firms has lent her backing to new plans by the government to make sure small businesses receive payments on time.

The government is starting a consultation that could see the Office of the Small Business Commissioner handed more power to assist small firms when it comes to overdue payments, and this is being supported by Eleanor Temple.

In her role as R3’s Yorkshire chair, Temple has advised small firms in the local area to keep an eye out for invoices being paid late, as this may indicate that the company owing the money is struggling, which can have knock-on effects for those due payments.

Speaking to Business Live, Temple said that one of the most significant reasons why Yorkshire firms experienced financial worries was late payment of money owed, and that more action is needed to tackle the problem, adding:

“When a company is not paid in advance for goods or services, it essentially acts as a lender for its clients, but it does not have the protection that a secured lender receives, and this can lead to cashflow problems if payments don’t materialise as expected.”

Temple concluded by saying that these late payments can prevent smaller firms from meeting everyday business expenses, pursuing fresh opportunities and making investments in new equipment or services.

Late payments leading to inadequate cashflow are a common issue that an accountant for small business in South Yorkshire can help such firms find a solution to.

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