Up to 80% of International Trade Is based on some form of credit or guarantee, according to the World Trade Organization. By some estimates, trade receivables are worth more than $3.7 Trillion in the manufacturing industry alone, and as much as 52% will be paid late to European and North American businesses.
In the United Kingdom alone, small and medium businesses were waiting on almost $80 billion in late payments and fees in 2017. Still, the commercial debt collection industry has seen very little of the fintech revolution of the past decade.
While billions and billions of dollars were being invested in financial startups focused on payments, compliance, wealth management, and Robo-advisory, less than $30 million in VC money were invested in debt-collection startups, according to data retrieved from CrunchBase. …
Large companies found guilty of abusing their buying power, failed to honor their commitment to pay their suppliers on time.
The Chartered Institute of Credit Management, the body that hosts and administers the Prompt Payment Code (PPC), announced it would revamp a plan to encourage faster payments to small firms.
Late payment causes thousands of English firms to shut down each year, The Times reported.
The CICM took action against Prudential PLC, British American Tobacco PLC, Fujitsu Services Limited, and 15 others earlier this month by suspending them from the PPC, a set of rules governing supplier payments that more than 2,000 U.K. …
As Boris Johnson was elected leader of the Conservative Party and subsequently appointed as Prime Minister by the Queen, British businesses found themselves confronting, once again, the prospect of a no-deal, “hard” Brexit.
The United Kingdom is now expected to leave the EU, with or without a deal to remain part of the economic zone, in October — only a little more than 3 months away.
It was earlier reported that UK businesses had been stockpiling for months prior to the then-expected March deadline for Brexit. However, according to Dave Lewis, Chief Executive of Tesco PLC, “October, from a retail point of view, will be much more challenging than March was. …