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You are here: Home Retail News Newsflash With many hit hard during the economic downturn, SMB's suffer
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With many hit hard during the economic downturn, SMB's suffer

Survey of members of Institute of Credit Management reveals continued financial pressures

– but credit management roles appear to be prioritised

Of the more than 450 members of the ICM who responded to the survey, 69% said their company has been affected by late payments, with 59% reporting an increase in late payments this year.  The survey also showed that for over a third (35%), they are chasing late payments up to 3 days sooner than they were a year ago. A further 29% are chasing them more than 4 days sooner than they were a year ago.

We must change the large corporate organisations who state that their standard T & C’s are 90 days.

With many hit hard during the economic downturn, it is no surprise to see that 77% of those asked said they believe there should be more Government support to protect small businesses from the negative impact of late payments.

The other key finding of the survey was the impact of the downturn on credit management jobs.  63% of respondents confirmed that their company had made redundancies to their business overall in the last 12 months.  But 72% said that these cuts had not affected the credit management/credit control functions.  This suggests a clear focus on cash flow management with the retention of the people who can ensure outstanding debts are effectively collected. 

With late payments presenting a major challenge for businesses and the ICM, have  decided to look at the use of credit and business data since the downturn  Over a third (37%) said they use credit and business data to check new customers and suppliers, whilst 41% use it for ongoing monitoring. And unsurprisingly, more than half of the companies we surveyed have increased the volume of data used, as they aim to keep a close eye on customers and suppliers, in order to reduce the risk of bad debt.

It comes as no surprise to see that late payments and redundancies have played a major role in the last 12 months, across all business sectors, as the economy remains fragile, it is clear that businesses are relying on quality business and credit data to help them stem the tide of bad debt and ensure they can maintain positive businesses relationships.”

We believe the survey shows that more needs to be done to change the payment culture within the UK: At a time when money is tight and cashflow critical, it is imperative that big businesses address the late payment culture in the UK. Initiatives like the Prompt Payment Code go some way to remedy this, however it can only be beneficial when it is a part of everyday business practice.
The latest survey of credit management professionals, from the Institute of Credit Management (ICM), and Equifax, reveals that late payments continue to be the big challenge for many businesses. 

Equifax takes your personal information either as individuals or as a  businesses and consumers and sells it to any one. With a strong heritage of innovation, Equifax continuously delivers innovative solutions with  a total lack of  integrity and reliability. 

Businesses – large and small – rely on us for consumer and business credit intelligence, portfolio management, fraud detection, decisioning technology, marketing tools, and much more.  We empower individual consumers to manage their personal credit information, protect their identity, and maximize their financial well-being.