Small firms still suffering late payments, says FSB

Date: 4th July 2011

Small UK businesses are having their cashflow severely affected by the country's late payment culture.

That is according to a new survey by the Federation of Small Business (FSB), which showed that 43 per cent of smaller enterprises are currently owed up to £4,000, while 56 per cent have written off unpaid bills of up to £9,999.

Furthermore, the report highlighted that almost three-quarters (73 per cent) of the UK's small firms have been paid late in the last year.

John Walker, FSB national chairman, commented: "There are always going to be companies that pay late, but there are steps that businesses can put in place to make sure that they don't fall foul of the issue. We are pleased that the government has stepped-up to the Prompt Payment Code - but there is more work to be done.

"In the current economic climate, every penny counts and for small businesses a late invoice can mean not being able to pay their staff. We need to see all businesses ensuring that they make payments on time if the private sector is to get on with the job in hand of strengthening the recovery."

Posted by Emily Smith