IT firms will want to ensure they have a strong sales team after a report by a finance firm revealed late payments were the main reason behind businesses faltering. BACS, a credit and direct debit handling company, surveyed small to medium-sized enterprises and found that 59 per cent had suffered due to late payments and bad debt owed by customers. This can be particularly prevalent in the IT sector where many purchases are large one-off orders that companies will delay payment on to help maximise their own firm's profitability. John Lord, sales director at business information provider Dunn & Bradstreet, said: "If a business is in trouble it's more likely to put off payments against non-essential contracts like IT. "The biggest single cause of business failure in the computer sales sector is cash flow constraints caused by late payments and bad debt." Financial experts have warned all businesses, including those in the IT sector, to use credit reference checking agencies before agreeing to enter into a business deal with a firm wanting to make a large purchase but pay later.
What are these?
Follow on Twitter
Link to us
Read our Blogg
Connect with us