Latest data from Time Finance has uncovered the true impact of late payments for SMEs with 75% of UK businesses worrying about cashflow as a direct result of overdue invoices from their customers.
In a recent survey into the worsening challenge of late payments, Time Finance found that chasing payments was damaging customer relationships for 17% of businesses, while 8% said the lack of essential working capital meant they were unable to afford key investments.
More Customers paying late
With the rising cost of doing business, 100% of SMEs now claim that more of their customers are paying late due to increased overheads across the board.
“Understanding the scale of late payments is essential to the service we provide at Time Finance. Invoice finance is a longstanding solution for businesses looking to build in headroom and run their business with confidence. We’ve witnessed demand significantly grow as more businesses recognise the value of this service.”
True impact of late payment on Small Businesses
As recent as February, a Small business survey conducted showed the hidden costs of late payment on the UK’s Small Business owner communities.
The Small Business Survey exposed the true effects of late payments on SME owners including stress and depression caused by non payment of business invoices.