Economic improvements overshadowed by late payment, according to latest
barometer of small business
Improvements in orders and turnover experienced by small firms are being overshadowed by
cash flow difficulties as a result of late payment, the latest Economy Watch member panel survey
from the Forum of Private Business suggests.
(PRWeb UK) April 2, 2010 -- Improvements in orders and turnover experienced by small firms are being
overshadowed by cash flow difficulties as a result of late payment, the latest Economy Watch member panel
survey from the Forum of Private Business suggests.
According to the monthly survey of members on the Forum’s Economy Watch panel 43% of respondents said
they had experienced an increase in orders, with 18% reporting a decrease and 39% no change.
In all, 35% said their turnover has increased from February, 24% that it has fallen and 40% that it stayed the
same. Respondents’ total turnover is up by a reported £508,000 in March compared to the previous month.
However, the total amount of capital tied up in late payment at any one time is £16,608,500, an increase of
£1,014,780 from February. This equates to 35.5% of their combined turnover.
“Our research shows that, while there are indications of recovery for small firms, particularly those seeing a
boost in orders and sales, this is being more than offset by increasing late payment,” said the Matt Goodman,
Policy Representative at the Forum of Private Business.
“Unfortunately, it’s a case of two steps forward, three steps back as far as small businesses and the economy are
concerned. Late payment devastates cash flow. It is important that more large companies sign up to the
Government’s prompt payment code and that the principle of sustainable payment is embraced across the supply
The survey’s other findings are as follows:
Other economic indicators
In total, 23% of business owners noticed an increase in profitability, 29% a reduction and 48% no change.
The amount of money held on deposit has increase