Payment Culture in the UK Manufacturing Sector
In 2023, small businesses in the UK Manufacturing sector continue to face significant challenges related to slow or late payments. These issues can have serious consequences for businesses, making it difficult to manage cash flow, pay suppliers and employees, and invest in growth.
One of the most significant challenges faced by small businesses in the UK Manufacturing sector is the impact on cash flow. Late payments can cause significant cash flow problems, making it difficult to pay bills and suppliers on time, and can lead to missed opportunities for growth. This can also lead to difficulty in obtaining financing, as lenders may be hesitant to work with businesses with unstable cash flows.
Furthermore, small businesses in the sector may struggle to compete with larger businesses that have greater resources and can afford to offer longer payment terms. This can lead to a situation where small businesses are forced to accept unfavourable payment terms, further exacerbating their cash flow problems.
In Manufacturing payment culture, looking at least year versus this year, we can see a similar difference in payment behaviour that we see in other sectors. Seven out of ten of last worse (slowest) payers last year have remained the same or are paying even more slowly. The same number, seven out of ten of the best (fastest) payers last year remained the same or are paying faster this year. The figure for Church & Co looks so slow it is possibly a mistake in their reporting. Good Business Pays contacted them to check but received no reply.
In conclusion, slow or late payments pose significant challenges for small businesses in the UK Manufacturing sector in 2023. These issues can impact cash flow, relationships with suppliers and employees, and competitiveness. While government measures have been introduced to address the issue, more needs to be done to ensure timely payments and support small businesses in the UK Manufacturing sector.