ICSM ECONOMIC NEWS: As diesel costs and inflation rise Ian Carrotte gives SMEs some tips on getting paid on time
By Harry Mottram: The USA have hiked interest rates to 4% today (17th September 2026) sending economic ripples across the globe. In Britain on the same day the Bank of England have opted to hold interest rates at 3.75% for a sixth consecutive month although there are concerns, they could rise to match the USA’s rate by Christmas as inflation is over 3% - slightly lower than in America – the reason for the rise there.
Ian Carrotte of ICSM said both economies are being affected by the unresolved Iran-USA War which has seen oil prices for Brent Crude Oil rise above $100 a barrel again. He said: “The sooner the conflict is ended the sooner the world economy can stabilise. Every time there’s a cease fire or peace talks oil prices fall – we just need a permanent end to the fighting and the Strait of Hormuz opened to normal maritime traffic.”
He said the rise in diesel at the pump adversely affects hauliers and logistics in general leading to costs for virtually everything we buy rising. That also puts pressure on SMEs and sole traders who have to pass on the costs to their customers – further creating issues of being paid on time. Some customers resist the increases and seek extra time to pay their suppliers in order to gain some free credit to offset inflation – but that leads to cash flow problems for businesses.
The chief executive of ICSM – the business membership group dedicated to campaigning against late payment - said: “If there is one piece of advice I would give to any business to cut costs and improve cash flow it is adhering to strict credit terms - with zero tolerance for late payers. Late payment is a hidden cost and continues to be a problem for the printing industry, manufacturers, hauliers and most industry sectors, and its effects can be devastating. Being paid weeks and months late can force a business into taking loans or an extended overdraft just to stay afloat – both of which cost money. While you are waiting for payment, overheads still need to be paid while due to a lack of cash flow you in turn are forced to delay paying bills late. It can drain your energy and drive to make your business a success which comes at a mental cost.”
Ian Carrotte continued: “If your credit limit is the national standard of 30 days - then stick to it - rather than allowing customers to pay late on 60 and 120 days - and beyond. And if the worst happens and a customer goes bust - then your liabilities will be lower than if you had allowed extended credit. It is tricky to introduce the policy to long term customers who are used to taking advantage of the free credit you’ve allowed them in the past. Offer a discount for early payment if necessary or other payment channels if that is easier for them.
“A diplomatic approach with conversations with key figures who sign off payment can work – and your customers are then in no doubt of where they stand. For new customers it is easier to implement with a signed credit agreement at the beginning of the relationship ensures there’s no misunderstanding. Otherwise, those lame excuses for late payment will continue and you will essentially be giving customers free credit.”
His advice comes ahead of what is expected to be a further hike in inflation due to the rise in oil prices. The Government’s Office of National Statistics (ONS) said motor fuel prices rose by 23% compared to August last year when Brent Crude was around $70 a barrel – but now $100 which reflects the rises. "This is the highest price recorded since November 2022," said the ONS.
Struggling with Late Payers or Bad Debt?
ICSM offers expert credit management and debt recovery solutions that help businesses like yours get paid fast.
• Free online suite of legal letters and final demands
• Specialist team ready to recover unpaid invoices
• Polite, professional mediation to preserve customer relationships
• Hardline legal options when needed
• Late payment interest, compensation, and fees recovered under the Late Payment of Commercial Debts Regulations 2002
Why Act Early?
Passing overdue accounts to ICSM early increases your chances of full recovery. Our multi-channel approach—calls, emails, and letters—ensures the right message reaches the right people at the right time.
We understand that non-payment often stems from miscommunication. That’s why we focus on resolving issues while protecting your reputation.
• Email the CEO: Ian.carrotte@icsmcredit.com and request to recieve the ICSM newsletter which lists firms that are in trouble
• Call: 01454 322234
• www.icsmcredit.com
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