Payment Culture in the UK Chemicals Sector
Late and slow payment is a persistent challenge for small businesses in the Chemicals sector in the UK in 2023. Despite government efforts to address the issue, many companies continue to struggle with cash flow problems, which can have serious consequences for their operations.
One of the main challenges that late and slow payment causes for small businesses in the Chemicals sector is a lack of liquidity. This can make it difficult for companies to pay their own suppliers, invest in new equipment or technology, or even cover their day-to-day expenses. In some cases, it can lead to insolvency and bankruptcy.
Comparing 2022 to 2023, we see the same names appearing in the slowest payer list, with Solvay Solutions, PPG Architectural Coatings and Crown Paints again taking an average of over 80 days to pay. At the other end of the scale, the fastest payers remain Diversey, NCH and Lubrizol who continue to pay their suppliers in around 20 days or less.
In conclusion, the issue of late and slow payment remains a significant challenge for small businesses in the Chemicals sector in the UK in 2023, where payment culture does not seem to be shifting. Without further action, the problems that late and slow payment in the sector causes is likely to continue to hinder the growth and success of small businesses in the Chemicals sector.