"With economic growth already faltering, late payments are a significant threat to the survival of SMEs across the country, applying pressure to businesses already battling high operating costs. When firms are forced to make impossible choices - between hiring and surviving, dipping into emergency funds or struggling to pay staff on time - it's a clear sign the Government needs to step in."
"Its survey finds businesses are now owed an average of £66,770 in unpaid invoices - a 10% increase year-on-year. Additionally, over six in ten (62%) say customers are taking longer to pay invoices in full compared to a year ago."
Late payments are creating severe financial strain on UK SMEs, with 42% unable to pay staff salaries on time and 24% pausing hiring due to customer payment delays. Businesses are owed an average of £66,770 in unpaid invoices, representing a 10% year-on-year increase. Four in ten SMEs have depleted emergency funds to maintain operations. Over 62% report customers taking longer to pay invoices compared to the previous year. SMEs are calling for government intervention, with 69% supporting serious consequences for late payers and 27% requesting specific protective legislation. The Business and Trade Committee has urged the Government to address this crisis.
#late-payments #sme-financial-crisis #uk-business-policy #cash-flow-management #government-intervention
Read at London Business News | Londonlovesbusiness.com
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