Maintaining the day to day operations of a business can be difficult, particularly where there are late payments involved which can effect cash flow.
The Federation of Small Businesses showed within their analysis that within the last quarter of 2019 around 40% of small businesses used money from successful finance applications to manage their day-to-day spending. This subsequently almost doubled late payments to £23 billion last year and every year, this causes around 50,000 small businesses to close.
Furthermore, small to medium sized businesses are reported to receiving late payments, with 54% experiencing delays in payments. Around one third of those reported suffer from stress as a result, with 10% looking to acquire professional support to deal with resulting anxieties.
Additionally 25% of business owners are reported to suffer outside of their working life. This data comes from Pay.UK who runs various credit and debit payment services.
To try and rectify demanding cash flow issues, businesses are more frequently using overdrafts and cutting their own salaries.
There are a number of solutions available to help cash flow issues and deal with late payments.
If you would like more information, or require assistance to recover debts, please get in touch with a member of our debt recovery service team.
late payments to SMEs have reached a four-year high