Late payments hitting SMEs
Aug 28 2008
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Small businesses are struggling to cope with an increase in late payments, a survey reveals.
According to research by the Forum of Private Business (FPB), 88 per cent of SMEs say larger customers are not paying them within contractually agreed periods, with 72 per cent reporting this as having a serious impact on their businesses.
Nick Palin, finance director of the FPB, says: ‘The research shows worrying trends emerging. Supplier abuse appears to be widespread, and many smaller firms are in a catch-22 situation, fearing that, if they take action, the larger companies will simply refuse to deal with them again.’
Of the 1,500 respondents asked almost one in three say they are owed between £1,001 and £5,000 from late payments, while 56 per cent report an increase in late payments over the last year.
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