Late Payments threatening businesses
Only 1 in three businesses are paid within terms
Research from leading alternative finance provider, Time Finance, has revealed that late payments are threatening the survival of UK SMEs.
For 70% of SMEs, late payments are a continuing issue leading to more severe consequences with over 40% worrying about their own cashflow as a result. Recent figures from the Federation of Small Businesses estimate that 50,000 businesses close each year due to late payments.
Time Finance found that only one in three businesses are paid by their customers within agreed terms, with 70% waiting more than 60, 90 or 120 days. As a result, a quarter of businesses struggle to pay HMRC.
42% of SMEs believe that late payments from customers was one of the greatest challenges and threats hampering business success, and one in ten are concerned for anticipated insolvency as a result.
Almost one in three businesses also fear their relationships with customers are negatively affected due to chasing payments, whilst over one third struggle to pay their own invoices or their own employees on time.
