|
|
Small businesses ‘hit by record levels of late payment’
The UK’s late payment culture is getting worse, with the amount owed to small and medium-
sized enterprises reaching record levels, a new report has revealed.
The latest research, from payment organisation Bacs, shows that late payments have now
reached an all-time high of £33.6 billion.
The average amount owed to each firm is also at its highest ever level of £39,000 and firms
are also having to wait longer to receive their payments.
Half of all UK SMEs are affected by the problem of late payment, and are waiting on average
28 days longer than their original payment terms to have their invoices settled.
Large companies account for nearly half of all late payments, with many blaming their
internal systems for the delay.
Commenting on the research, Mike Hutchinson from Bacs said, ‘The issue of late payment is
continuing to get worse for SMEs in the UK at a time when they need to be able to plan
ahead for growth and ensure a strong cash flow’.
Small businesses are advised to make sure that they agree payment terms upfront, and to
work to promote a culture of prompt payment throughout their business.
We can help with your cash flow planning needs - please contact us for further assistance.