Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Late payments ‘soar’ as pressure grows on suppliers

by April 24, 2023
April 24, 2023
Late payments ‘soar’ as pressure grows on suppliers

Businesses may struggle to access credit as operating costs hit their highest levels since 2008 and as late payments soar, a leading insurer has warned.

Credit is set to become more expensive and in shorter supply as companies become slower in making payments, according to Allianz, one of the world’s biggest insurance companies.

Its analysts warned that suppliers increasingly were operating as de facto banks to their clients, which raised liquidity risks and pushed more companies into problems with cashflow.

Operational costs as a proportion of turnover have hit their highest level since the financial crisis and late payments continued to rise last year, with nearly a fifth of businesses worldwide reporting that typically they were paid for their services after 90 or more days.

The rise in late payments is one of many factors that have led to the rising cost of running a business, Maxime Lemerle, lead analyst for insolvency research at Allianz, said, adding that “lower growth, higher inflation, the higher cost of financing and more non-payments have all contributed”.

Interest rates have risen worldwide as central banks race to tackle inflation driven by the jump in wholesale energy prices after the pandemic and Russia’s war on Ukraine. The rise in the cost of running a business has slowed the pace of the post-pandemic recovery for many countries. Britain now faces a liquidity gap of £570 million, with a global liquidity gap of £24.2 trillion, according to the report.

Figures published by Bibby Financial Services, which provides financial services to small and mid-sized businesses, found the average level of “bad debt”, whereby a company suffers because clients fail to pay the full sum invoiced, had risen by 61 per cent in the past year. Smaller companies have £16,641 of bad debt on average, up from £10,329 last spring. Six in ten businesses said it was taking longer for customers to pay invoices in full.

Read more:
Late payments ‘soar’ as pressure grows on suppliers

0
FacebookTwitterGoogle +Pinterest
previous post
VP Harris credits nonexistent federal agency with approving mifepristone: watch
next post
First-time buyer homes hit record £225,000, Rightmove finds

You may also like

From Richard Branson to Yuri Milner: Four Influential...

August 23, 2024

Elon Musk accused of turning Twitter offices into...

December 8, 2022

Google faces pressure to sell Chrome browser amid...

November 19, 2024

Fall in Food and Eating Out Costs Drives...

March 20, 2024

40,000 UK SMEs seek finance as spiralling costs...

September 13, 2022

UK economy slows after surprise contraction within services...

August 23, 2023

Short-term financing for modern businesses

April 25, 2025

A-level results: Number of top grades down on...

August 17, 2023

Waldeck Partner With The University Of Lincoln To...

September 1, 2023

More than 420,000 brick and mortar retail jobs...

October 9, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • TIMELINE: Inside the evolving relationship between Trump and Musk from first term to this week’s fallout

      June 7, 2025
    • Deadly drone wars are already here and the US is horribly unprepared

      June 7, 2025
    • Week Ahead: NIFTY’s Behavior Against This Level Crucial As The Index Looks At Potential Resumption Of An Upmove

      June 7, 2025
    • FLASHBACK: Musk accused Trump, GOP leaders of not wanting to cut spending — here’s where they said they would

      June 7, 2025
    • ‘Right down the line’: Medicaid reform in ‘big, beautiful bill’ divides lawmakers by party

      June 7, 2025
    • FAST distribution and IA

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,562)
    • Stocks (3,135)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved