Companies 'looking to improve cashflow controls'
Published Date: 30/05/2012 15:56:25
Tightening up their cash and credit control procedures might be a wise move for small business insurance customers looking to safeguard their cashflow.
Indeed, new research from Clydesdale and Yorkshire Banks has shown many companies are already adopting this stance.
According to the study, organisations took an average of 49 days to collect payments - on combined sales of £6.7 billion - over the last ten months.
This was slightly lower than the 52 days recorded previously, suggesting employers are worried about the effect bad debts and late payments might have on their operations.
Martin Rothera, head of invoice finance at Clydesdale and Yorkshire Banks, noted the availability of credit and intensifying pressure on monetary issues are likely to be contributing factors for the tightening of procedures.
"Late payments and bad debts are a headache ... they can affect not just the day-to-day running of a business but the sustainable growth of ambitious and profitable companies," Mr Rothera added.
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