Research carried out by the Credit Management Research Centre (CMRC) has revealed that credit management techniques practiced by small businesses throughout the UK are improving.
According to the CMRC's research, small businesses have become more astute when establishing their payment procedures, with the number of sales agreed in writing increasing from 49% in 1996 to 61% in 2001. In addition, the number of small businesses with written credit policies has increased by a staggering 60%, jumping from 26% in 1996 to 43% in 2001. Findings also indicated that businesses were more likely to credit check new clients in 2001 that they would have been four years earlier.
The recent study also identified that the second phase of the Late Payment Legislation was being used by one in 10 small businesses and general awareness of the legislation had increased from 80% in November 2000 to 90% in July 2001.
