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SMEs crippled by late payments

Apr 06 2010

Late payments increase for small businesses

Small businesses have an average of £47,000 tied up by late payments, a survey reports.

The poll of 350 businesses by the Forum of Private Business (FPB) finds the total amount of overdue payments among the sample increased by £1 million in February to £16.6 million.

Matt Goodman, policy representative at the FPB, says: ‘Late payment devastates cash flow. It is important that more large companies sign up to the government’s prompt payment code and that the principle of sustainable payment is embraced across the supply chain.’

Some 24 per cent of respondents say they will not be in a position to invest in their businesses over the coming months.

Comments [1]

Comment by Louise Handley

Wednesday 7th April 2010

why not accept payments by credit or debit card? this is an instant solution. Businesses would then be eligible for a business cash advance which could give them access to working capital to invest in their business.

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