Luisa Grey, a director at Eazipay Ltd, one of the UK’s largest Direct Debit processing companies, knows a thing or two about managing cash flow. Here she highlights what the most recent reports tell us about managing cash flow and how you can avoid the traps.
A raft of new reports on SMEs and cash flow last month has underlined the unnecessary time and money being spent on managing company cash flow.
Businesses must plan ahead to avoid missing or delaying essential payments to staff and suppliers over the Easter Bank Holiday weekend, says Bacs Payment Schemes Limited (Bacs), the company behind Direct Debit and Bacs Direct Credit.
With Good Friday (14th April) and Easter Monday (17th April) classed as public holidays and therefore non-processing days, payments must be scheduled to take that into account.
Cambridgeshire-based Direct Debit processing company, Eazipay Ltd, is celebrating after yet another record breaking year.
With December's figures still to be collated, Eazipay has so far seen a 5% increase in the value of Direct Debits processed on behalf of its clients in 2016 than for the whole of 2015.
Almost half of the UK’s small to medium sized enterprises (SMEs) are being paid late, according to Bacs Payment Schemes Limited (Bacs), the company behind Direct Debit and Bacs Direct Credit in the UK.
The average late payment debt now stands at £32,185 which equates to a substantial £26.3 billion total across the 47 per cent of SMEs that say customers and clients stray beyond agreed payment terms.
New figures reveal that 16.5 million Direct Debits have been set up to pay for vehicle tax in the UK, two years since the option was first introduced by the Driving and Vehicle Licencing Agency (DVLA).
In fact, since the DVLA started offering the option in October 2014, the number of payments collected this way has now surpassed a staggering 134 million. To put this into context, on the final day of last month (30 September) alone, a record 7.2 million Direct Debits were processed for vehicle tax.