LATE payment of invoices has a massive impact on the viability of businesses. Alwyn Ellis, regional manager of Venture Finance PLC for the South East, believes that with recent technological advancements in payment systems there is no defence for the excuse that the cheque is in the post.

But it seems that late payment is prevalent in business. Annual reports from the Federation of Small Businesses show that the average length of time it takes a plc to pay its suppliers is 46 days.

Mr Ellis said: "The impact of late payment is huge, not only on the company suffering the delay in payment, but for the whole of the UK's economy. Late payment eats into profits, reduces net margins and ultimately threatens the viability of businesses. Thousands of otherwise profitable companies fail each year as a result of financial difficulties experienced by their own customers."

Pursuing a customer who is delaying payment can be an arduous and sometimes sensitive issue. But the majority of payment excuses come from a few administrative or cash flow issues and learning a little about how to respond can get companies a long way.

Mr Ellis said: "As long as companies continue to accept excuses, businesses will suffer cash flow problems. By keeping a record of customer contact and responding quickly and effectively to excuses, businesses can bring late payment to an end and most importantly ensure their own business remains viable."