That is according to recently-published figures from Bacs, which show that 861,000 smaller enterprises are currently experiencing late payments. On average, business owners are being forced to wait 28 days more than the specified terms in order to receive payments, putting increased pressure on their cashflow.
The average amount owed now stands at £39,000, with the total standing at £33.6 billion – up from £30.4 billion 12 months ago.
Mike Hutchinson, head of marketing at Bacs, said…
‘The issue of late payment is continuing to get worse for smaller enterprises in the UK at a time when they need to be able to plan ahead for growth and ensure a strong cash flow, but instead they are hanging on for payments which could have a serious impact on their business if they are continually late.’
This news will undoubtedly alert a number of businesses to consult us in order to improve their cash flow and reduce their debtor ledger.