Thursday, June 12, 2008

Small Firms Stung By Late Payers

The Buffalo News recently ran a story about how the economy and late payments are hurting small businesses. In the article, it states….

“Diana Ennen, owner of Virtual Word Publishing, a publicity firm based in Margate, Fla., said she first started seeing a slowdown in payments about six months ago.

“In the last four months, it’s gotten really bad, and almost at a critical point,” she said.

Ennen’s late payers tend to be people who work as independent contractors for companies which, because of the uncertain economy, suddenly decide to end the relationship. The independent contractor isn’t getting paid anymore, and in turn is having a hard time paying Ennen.

When clients are behind, Ennen said she’s careful about how much new work she’ll do for them.

“I try not to get too far in advance, and I have to see some payment,” she said. “You can’t do a lot of work now and hope the payment will be there.”

Click here to read the full article

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