New research conducted by Commercial Data specialists Dun & Bradstreet has highlighted that the UK’s late payment culture is continuing to have an are having an adverse affect on British Business.
The research also revealed that 11 percent of British Companies are owed a total of more than £100,000.
In the survey conducted of over 500 managers at British companies (ranging from 2 – 250) the findings showed that late payment it is putting the future at risk for 58% of British SMEs.
Average late payments totalled £63,881 on average for every SME, with a whopping 11% owed between £100,000 to £250,000.
This withholding of payments brings about cash flow difficulties for 35%, delayed payments to other suppliers for 29% and reduced profit performance for 24%.
Key Business late payment findings
- 51% say late payments are more of a problem than they were three years ago
- 58% say late payments are putting the business at risk of failure
- 58% of SME owners use personal savings to cover the shortfall from late payments
- 36% of SMEs don’t credit check any customers
Business and Industry Finance Experts all recommend companies take immediate action where terms are breached.
Leading Debt Collection experts have warned that unless a more pragmatic approach is adopted by company chiefs, the problem will not go away.
