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Newsletter #125 - Late payment problems, PC security, make more sales this summer, insolvency guide

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In this week's Business121 Newsletter:

1. Do you have a late payment problem?
2. Computer (PC) Security - 7 things you must have
3. 5 ways to get more sales this summer
4. Guide to insolvency, liquidation and bankruptcy
5. Passing the family business to the next generation

Small Business News

6. Small business owners back Tories as New Labour sinks fast
7. Insolvencies rise - businesses urged to get tough on late payers
8. Free access to Government contracts for small businesses
9. Further reaction to Family Business Tax postponement


Do you have a late payment problem?

Late payment is a persistent problem for small businesses. Despite the existence of late payment legislation designed to protect SME's, many small companies are reluctant to go down the legal route when waiting for invoices to be paid. Most companies do not want to risk relationships with larger firms and hope that unpaid invoices do not impact on their cashflow. This way of thinking may work when times are good, but a different approach might be worth looking at when the economy looks more shaky.

With the failure of thousands of small businesses blamed on late payment issues each year, law firm Mace and Jones has pointed out that the credit crunch is likely to make credit control problems even worse. Partner Duncan McAllister told us that the payment climate is worsening as the availability of credit shrinks and loan costs rise.

"Late payment should not be tolerated and can be tackled with an effective credit control system. Too many businesses are paying late to sustain their own cash flow and undermining their suppliers in the process. We advise businesses large and small to 'get tough' on this practice. That means thorough management including credit checks on new customers and even existing customers, offering incentives such as discounts for prompt payment and making customers aware of their obligation to pay with prompt invoices."

According to research we published from Barclays Local Business earlier in the year, the UK's small and medium sized companies were owed a staggering £8.3bn at the end of February 2008, due to late payment. On average, small companies are owed £2,000 at any one time. Entrepreneurs typically have to wait an extra fortnight on top of this time period before they receive the funds.

If you're concerned about late payment, our Business Finance section contains dozens of articles on late payment, cashflow and credit control:

http://www.bytestart.co.uk/content/finance/43_2/index.shtml

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Computer (PC) Security - 7 things you must have
Keeping the computers and data in your business safe is a vital job that you need to be on top of at all times. Bytestart has put together the top seven computer security must haves for every small business.

5 ways to get more sales this summer
With the UK determined to talk itself into a recession, you should take every step you can to keep your revenue as high as you can now. Here are five ideas to get more sales this summer.

Guide to Insolvency, Liquidation and Bankruptcy
The last thing you want to do when running a business is to run out of cash. Here is a guide to what can happen to businesses who can't pay their bills - insolvency, liquidation and bankruptcy explained.

Passing the family business to the next generation - Legal Guide

Of all the many things that can disrupt or wreck a business, a change in ownership must be near the top of the list. We look at the common ways of transferring ownership to the next generation, and the pitfalls you might encounter along the way.

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SMALL BUSINESS NEWS

Small business owners back Tories as New Labour sinks fast
New research shows that nearly two thirds of small business owners believe that the Conservatives best understand their needs - compared to a dreadful 6% expressing the same sentiments for the Labour Party.

Insolvencies rise - businesses urged to get tough on late payers

Businesses are being urged to take a tough line on late payment, after fresh figures revealed the rising number of insolvencies.

Free access to Government contracts for small businesses
For a further two months, new registrants can gain free access to public sector contracts valued under £100,000 in the UK and Northern Ireland.

Further reaction to Family Business Tax postponement

The Chancellor's decision to postpone the "income shifting" proposals in March was widely celebrated - a leading accountant suggests such legislation would have had an incredibly detrimental affect on family-run businesses.

** For the latest Small Business News, visit http://www.Bytestart.co.uk **

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more about it and a special offer for Business121 readers here;
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(c) Business121.co.uk 2008

Posted June 4, 2008



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