Three-quarters of UK businesses plan to update their credit management procedures this year, although few expect late paying clients to change their ways, according to new research.

The survey, undertaken by the Better Payment Practice Group (BPPG), found that 75 per cent of firms claimed to be using the new year as a good opportunity to ensure invoices and bills are paid and received efficiently.

However, the study revealed that just 18 per cent of those polled expected late payers to adopt better practices in 2004, underlining the importance of having proper procedures in place to deal with tardy customers.

As reported by Startups.co.uk, late payment has become an unwelcome part of business life in the UK, with most companies resigned to the fact that they will rarely be paid on time, with a significant minority openly admitting that their policy is to not meet payment deadlines.

The government has introduced several measures over the past two years aimed at tackling the problem, including giving firms the right to take tardy payers to court for compensation.

However, the laws have done little to help many small businesses, who are often crippled by late payment and are unwilling, or cannot afford, to go to court.

The BPPG said that many basic techniques can be used to help combat the problem, including:

  • Proper credit vetting of new and existing customers.
  • Making terms and conditions clear at the outset.
  • A well thought out credit management and collection strategy in case of default.

Dominique Vaughan Williams, of the BPPG, said that it’s never too late to improve credit management practices.

“As our survey shows, it’s highly unlikely that late paying customers are going to change their tune without any pressure to do so from the supplier.

“Businesses need to take preventative steps to minimise the impact of late payment, and not be afraid to protect their cash flow,” she said.