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Late payments continue to be a drag on the forward momentum that the economy is experiencing in the south. Many companies, particularly smaller ones, are being prevented from investing in people and processes because other businesses, usually larger ones, are hanging onto their money


Indeed, SMEs are said to be owed nearly £34 billion in late payments. Recently, an all-party inquiry heard desperate stories from small companies that were being “hung out to dry“ by their clients who were using their muscle to renege on pre-agreed payment terms.


The inquiry is due to publish recommendations this summer. But whether a group of MPs will


have the firepower to insist that things change is a moot point.


Organisations like the Federation of Small Businesses have campaigned for years for a tougher line to be taken on the late payers. And, of course, legislation already exists. In 1998, the Government gave businesses a statutory right to claim interest from other businesses for the late payment of commercial debt.


The problem is: how many companies would risk losing a key client by imposing such interest charges? The client would simply refuse to pay, and threaten to walk away.


If you have a public sector client, it is expected to pay within the default period of 30 days. Payment terms must not exceed 60 days unless both parties have agreed such an extension.


In the private sector, it‘s a free-for- all. In one year alone, more than 4,000 UK businesses fail as a direct consequence of late payment. It‘s a cultural attitude that needs to change.


David Murray Publisher


Foster Wheeler acquires UK-based Ingen Ideas


Foster Wheeler AG, headquartered in Reading, has acquired Ingen Ideas, a privately-held upstream consultancy company located in Aberdeen.


Ingen specialises in field development and project decision support, focused on the evaluation and implementation of oil and gas field developments. Its expertise includes process engineering including subsea and topsides design, flow assurance, enhanced oil and gas recovery, carbon management and petroleum engineering.


www.businessmag.co.uk


Ingen will become part of Foster Wheeler’s EMEA upstream operations, which already have bases in Reading, Woking, Glasgow and Hull.


Foster Wheeler AG, based in Switzerland and with operational headquarters in Reading, is a global engineering and construction company and power equipment supplier delivering technically-advanced facilities and equipment.


Details: www.fwc.com


From left: Phillip Monks (Aldermore CEO), George Ashworth (managing director of Aldermore’s asset finance division) and Vince Cable


With its balance sheet grown to over £0.5 billion, Aldermore’s asset finance division has now lent more than £875 million to UK SMEs. To celebrate this achievement, Aldermore welcomed the secretary of state for business, innovation and skills Vince Cable to its offices in Reading to discuss the issues facing challenger banks.


Cable said: “Aldermore Bank should be proud of having reached such a significant milestone of support for small and medium-sized businesses. I hope it is able to maintain this momentum and help even more firms to access the finance they need to invest and grow.


“The Government sees challenger banks like Aldermore as an important way of getting finance to SMEs, including through initiatives such as the business bank. I look forward to working closely with them as we support more SMEs to access credit.”


As well as speaking with Aldermore staff, the business secretary also spent time with three businesses that Aldermore supports: Translift


Bendi of Redditch, 1pm plc of Bath and Asset Advantage of Basingstoke. The directors of these businesses discussed the issues facing UK SMEs and the support they get from Aldermore.


Asset finance is a critical source of funding for businesses, with 60% of UK small and medium-sized businesses using it for funding. It is a tailored solution enabling a business to acquire the assets it needs to grow and free up important working capital rather than tying it up in fixed assets.


Aldermore has over 12,000 asset finance customers and finances everything from traditional construction and materials handling equipment through to office reburbishments.


George Ashworth, managing director of Aldermore’s asset finance division, said: “I’m delighted the secretary of state was able to join us and celebrate this great news for Aldermore and for our SME customers."


THE BUSINESS MAGAZINE – THAMES VALLEY – JULY/AUGUST 2013


Aldermore reaches £875m milestone in lending to UK SMEs


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