New research has shown that UK SMEs are struggling to process their invoices in a timely manner, which has consequences for the entire supply chain.
Almost a third of UK finance decision-makers (29%) say that they are unable to process supplier invoices in less than 20 days, with an additional 6% saying it can sometimes take more than 30 days and another 7% unable to identify how long it took at all.
COVID-19 has exposed the false assumption that each business is independent, with many business leaders having the stark realisation that they are, in fact, highly reliant on the goodwill of their supply chain and the support of their community.
With six million SMEs in the UK at the beginning of 2020, any delays in processing invoices or poor payment practices can quickly put supplier relationships under strain and could leave many businesses battling for survival.
The results have been published as part of a wider independent research report, titled ‘The COVID-19 stress test for business: an accelerator for change’, commissioned by Northampton-based document management, accounts payable and purchasing solutions provider, Invu.
In addition to late payments, the research also exposed a lack of effectiveness of the Purchase Order
link source - East Midlands Business Link General