Press Release

LATE PAYMENTS CONTINUES TO CHALLENGE SMALL BUSINESSES

Equifax calls for better collaboration between suppliers and customers as FSB 'names and shames' late payers

London, 17th September 2009 - With fresh research from the Federation of Small Businesses (FSB) revealing small businesses in the UK are waiting up to four months for invoices to be paid by big brand names, Equifax, leading business information expert, believes that putting pressure on suppliers for longer payments in an attempt to improve cash position is not the answer during the economic downturn.

Neil Munroe, External Affairs Director, Equifax comments, "Delaying payments can set off a domino effect which could be really difficult to stop and particularly hits smaller businesses. These organisations have to cope with delays in payments by looking for new funding from their banks - or delaying payments to their suppliers. And this could, in turn push them closer to the brink of failure.

"We think a better approach is for companies of all sizes to collaborate in a responsible manner. In order to achieve this, gaining knowledge about the financial standing of both customers and suppliers is key. "On-going monitoring of customers and suppliers gives businesses the insight to be able to have the right discussions to determine long term mutual benefits," continued Neil Munroe. "For example, suppliers who are likely to be least affected by the recession can be contacted to negotiate extended payment terms. However those businesses who are struggling, customers need to pay promptly."

To tackle the challenge of late payments and ensure businesses are not dramatically affected, Equifax is advising that companies should review their financial policies and customer management tools. By taking a fresh look at current processes and implementing a few simple changes, businesses could help each other to not only survive the recession, but go on to prosper once it subsides.

Neil Munroe concludes, "Some businesses are over-reacting to present circumstances instead of looking at the bigger picture. Companies need to review their customer portfolio, working out who pays regularly, whilst looking closely at those who represent a higher degree of risk."

ENDS

For further press information please contact: Wendy Harrison, Cecile Stearn, Margot Tomkinson or Jenny Staniforth at HSL on 020 8977 9132 / Fax: 020 8977 5200 or Email: margot@harrisonsadler.com