Small businesses owed more than £1.1bn

Date: 5th June 2009

Small companies in one UK region are owed more than £1.1 billion on any given day due to late customer payments, it has been revealed.

Barclays Local Business's yearly Late Payments investigation discovered that organisations in the north-east of England have lost about £370 million during the last year due to non-payment, the Journal reported.

As a result, more firms could experience difficulty with cashflow and subsequently seek the assistance of a small business accountant.

Regional director for Barclays Local Business in the north-east, Amanda Shepherd, told the Journal: "Despite some recent positive economic signs, it's concerning that late payments are such a problem in the north-east."

She added that this was a "serious issue" for the organisations that took part in the survey, with many saying it placed their "day-to-day survival" at risk.

This year's budget saw chancellor Alistair Darling introduce new trade credit insurance to protect small firms against defaults on client payments.