Late payment problem worsens for small businesses

Small and medium-sized businesses are now owed a record £33.6 billion in late payments according to the latest late payment survey by Bacs.

The total owed in late payments has increased by 10% in the last year, with the average small business now owed £39,000. To compound the problem, businesses are also having to wait even longer to be paid.

The scale of the problem is illustrated by the fact that half of all UK SMEs (861,000 businesses) are currently suffering from late paying customers. Business owners say they are currently being paid, on average, 28 days later than the invoice terms.

Another survey finds large companies are slowest payers

The research reveals the worst late payment culprits are large companies, with these corporates being responsible for 48% of all late payments. These findings concur with other surveys and reports on the issue of late payments, which consistently show large firms are the slowest payers.

On the other hand, the Government and not-for-profit organisations are the fastest payers, with just 9% of small businesses finding late payment an issue with these customers.

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