The Importance of Paying on Time


The Importance of Paying on Time

While it might seem an obvious concept, many businesses struggle with unreliable suppliers and clients whose payment terms are unclear. Late payments cause major issues within businesses of all sizes in the UK, and are a worryingly common problem. In fact, in a survey completed in 2018, it was found that 27% of UK invoices were paid late. Even worse, it seems that the biggest companies are some of the worst offenders, with small businesses reported to be chasing £14.9 billion in late payments last year.

Avoid late payments with Payontime

The Effects of Late Payments

Late payments between companies can lead to a whole raft of difficulties for the out-of-pocket party, including:

  • Being unable to expand their own business – unable to buy more equipment, make system upgrades or employ more people
  • Paying employees late and creating a culture of unease within staff
  • Losing workable hours to chasing aged debt.

How Can You Avoid Dealing With Late Payments?

By trading with other companies who prioritise prompt payment and who have clear payment terms to which they adhere, you can hopefully avoid having to deal with late payments and any resulting issues.

Connecting with likeminded businesses across the country can be difficult. However, the Payontime community of supporters is there to help!

What Is Payontime?

Here at Tanto Labels, we are proud to be a Payontime supporter. Payontime is an online community for UK businesses that supports prompt payment and acts as a resource for businesses needing help and guidance on issues such as late payments, payment procedures and invoicing. It’s also a great reference point for updates to the latest legislation and rules.

The British Government along with business leaders launched the Better Payment Practice Campaign that ran from 1997 to 2008. The Payontime supporters network was established to continue the work and support that this campaign started.

With a range of FAQs, articles and a service team, Payontime is an invaluable resource for companies in the UK that follow basic rules regarding payment procedure.

Why Are Late Payments Still a Problem Today?

Having begun tackling the problem in 1997, we might have hoped that the UK business sector would be more reliable, more regulated and more prompt when it comes to payment procedure. But there’s still plenty of work to be done.

In the Chancellor’s Spring Budget for 2019, he outlined the government’s plan to tackle late payments and support small or medium-sized enterprises (SMEs). Chairman of the Federation for Small Businesses, Mike Cherry, said the following:

‘At a time of great uncertainty, the Chancellor has shown today that there is still plenty of scope to support the UK’s small businesses… Four out of five small businesses have been paid late, and we told the Chancellor that today was the moment to act, to tackle this scourge once and for all…The end of late payments could finally be in sight. It can’t come soon enough, to bolster small businesses at a time when they are in great need of support and a lift in confidence.’

Here at Tanto Labels, we offer a wide range of high-quality products and services. If your business need labels, printers or printing software, and want to feel like a valued member of the UK’s business community, you can rely on us to treat you right. Contact our friendly team today, to see how we can help you and your business.

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