UK SMEs have been forced to write off £2.2bn in revenue because their customers have become insolvent following the effects of the pandemic.
Nimbla conducted a survey in September 2020 which revealed that more than a third of SMEs were waiting to be paid an average of £59,013 for work that was completed before lockdown.
A fifth of those believed that they would never be paid for this work, losing an average of £24,903 which is worth £2.2bn in revenue across all SMEs.
It has been reported that a third of businesses confirm that they have had 3-5 invoices go unpaid every year over the last 3 years, with half of those invoices worth £41,193 written off due to customers being insolvent.
Businesses also admitted spending a significant amount of time chasing invoice payments which were left unpaid because the customer became insolvent.
Another surprising statistic is that only 4% of those business owners take out trade credit or invoice insurance which would protect them against their customers' insolvency.
With the amount owed to UK SMEs set to increase dramatically over 2021, businesses need to ensure they seek help when faced with insolvent creditors.
If your business has struggled with unpaid invoices, please contact a member of our creditor services team who can assist you with securing what is rightfully yours and support you in collecting unpaid debts.
UK small-and-medium-sized businesses have written off £2.2bn in revenue because their customers have become insolvent