DELAYS to mail deliveries caused by severe weather are likely to hit firms waiting for cheques in the post, according to the organisation behind automated payments.
Research by Bacs Payment Scheme suggests that British businesses could be facing cash flow misery in the early part of the new year.
Bacs said small and medium-sized firms were already owed an average of £32,000 each in late payments – adding up to a massive national bill of £24.6bn.
More than three-quarters of the country’s 1.68m SMEs receive payments via cheque – and with the expectation that many of these cheques will be sent by post, the national bill could rise to new heights over the coming weeks if payments are delayed in the post.
Mike Hutchinson, head of marketing at Bacs, said: “Companies can help protect their cash flow against potential postal disruption by swapping to automated payment methods such as Direct Debits and Bacs Direct Credit.
“The latest bout of bad weather is a reminder for businesses to consider all their options and – in collaboration with their suppliers and customers – decide which alternative payment methods best suit their specific needs.”
Bacs is a not-for-profit, membership-based industry body owned by 16 of the leading banks and building societies in the UK and Europe. It is responsible for the schemes behind the clearing and settlement of automated payments in the UK, including Direct Debit and Bacs Direct Credit.
