With nearly three quarters of SMEs across Scotland waiting on payments from customers there is certainly a domino debt effect. Collecting monies from Scotland is no different process wise as long as the Jurisdiction Clause confirms we can enter legal proceedings in England.
If a business is waiting for a payment from their customer, the knock-on effect is that they themselves as a company can then find it difficult to find cash flow to pay their own debts.
Whilst there is much less leniency with companies you should still work with them to try and resolve the debt crisis before legal proceedings occur.
NEARLY three quarters (72 per cent) of small or medium enterprises (SMEs) across Scotland are currently waiting on late payments from customers, according to new research from Barclays surveying 500 UK small business owners. This is significantly higher than the UK average of 58 per cent. For medium sized enterprises with 50 to 249 staff, those waiting on late payments rises to more than nine in ten (94 per cent). Late payments negatively impact a business’s income, which can result in cash flow instability. For some businesses, this owed money might prevent new hiring opportunities or investment back into the business. In worst case scenarios, the business might be forced to close.. ...