Payment Culture in the UK Health & Life Sciences Sector
Late payment continues to be a significant challenge for small businesses in the UK Health & Life Sciences sector in 2023. The sector has always been underfunded, and with the pandemic causing an economic slowdown, small businesses have felt the pinch even more.
Small businesses in the Health & Life Sciences sector also face unique challenges, such as long payment terms and delays caused by the regulatory environment. Many small businesses must wait for approvals from regulatory bodies before they can invoice their clients, which can cause further delays in payment.
Moreover, the Health & Life Sciences sector is incredibly competitive, with many small businesses vying for the same clients. Late payments can give larger competitors an advantage, as they may have the resources to wait for payment and continue operating while smaller businesses struggle.
Comparing this year with last, the sector doesn’t seem to be improving payment culture very much, with Reckitt Beckinser increasing payment times from 58 to 80 days. It will take more time for us to understand why the Health & Life Sciences sector is not improving, but it does seem that Products companies feature more in the slow paying list than Services companies who seem to pay faster.
In conclusion, late payment continues to be a significant challenge for small businesses in the UK Health & Life Sciences sector in 2023. The issue needs to be addressed to ensure the sector can continue to innovate and provide the essential services that society needs.