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.
A record 109.3 million payments were processed in just one day last week by Bacs Payment Schemes Limited (Bacs), the organisation behind Direct Debit and Bacs Direct Credit in the UK.
That’s the equivalent of over 7 million payments passing through the Bacs system each hour the processing window was open (15.5 hours), or in excess of 117,000 per minute.
The window is closing for businesses yet to accommodate higher security requirements. Bacs Payment Schemes Limited has been warning businesses of the change for the past 16 months, and the deadline is now just one week away.
The company behind Direct Debit and Bacs Direct Credit, used to pay 90 per cent of the UK’s workforce, will switch off older internet protocols on 19 September. Any business that has not made the appropriate changes to software and IT will find themselves locked out of Bacs from that date.
We've all had day dreams about having a brilliant idea, setting ourselves a new challenge, quitting the day job and starting our own company. As the dream continues, five years later we're sunning ourselves on a beach and living off the proceeds from the sale of our by now massively successful business. It's very easy to succumb to the Del Trotter notion that “This time next year we'll be millionaires.”
But how do you turn that dream into a reality and avoid ending up in Peckham with a yellow Reliant Robin as your company car? Luisa Grey, a Director at Eazipay Ltd, one of the UK’s largest and fastest growing Direct Debit bureaux, explains more.