As the world moves out of the Covid-19 pandemic, proper cash flow management by SME owners has become very crucial as an inability to recover outstanding payments can create many unpleasant problems for SMEs. For instance, unpaid invoices have led to the closure of more than 50,000 small businesses across the United Kingdom. Meanwhile, changes introduced to the Prompt Payment Code (PPC) from July 1 make it mandatory for all signatories to pay 95% of their invoices to small businesses within 30 days. Furthermore, the signatories must accept that their suppliers have a right to charge late payment interest on all overdue invoices.
