New research from Hilton-Baird Collection Services has found that the ongoing problem of late payment has forced 34% of the UK’s printing and publishing businesses to increase borrowing in the past three years.
Businesses in the printing and publishing sector are now having to wait 22 days beyond agreed terms to be paid by their customers, with one in ten forced to make redundancies since the start of 2012 as a direct consequence.
The annual Late Payment Survey saw more than 1,000 businesses across different sectors surveyed by the agency. It showed that 46% were left with no alternative but to pay their own suppliers later, and that 22% have also had to delay payment to HM Revenue and Customs.
The research additionally suggested that businesses in the printing and publishing sector may not be doing enough of the basics when it comes to credit management, leaving their cash flows exposed to late paying customers.
Over the past three years, the sector is below average in terms of the number of businesses credit checking customers – both new (48%) and existing (26%) – suspending work and services (48%), and using the Small Claims Courts and County Court Judgments (26%).
It is also behind on the use of statutory interest (12%) and outsourcing unpaid invoices to debt collection experts (2%).