Rise in late payments to SMEs

According to Bacs Payments Schemes Limited (Bacs) small and medium size enterprises (SMEs) are now owed £25.9 billion. This is apparently due to a 40% increase in overdue payments over the last year.

According to their research

• the national average of outstanding payments was £38,000 (£30,000 in 2007)
• overdue invoices in the Midlands were the highest at £69,000
• 57% of businesses are owed money (up from 51%)
• manufacturing had the highest rate of late payments being 65% and
• the most common cause of late payments was cash flow issues.

If you would like to find out more or have any questions, we will be delighted to offer any help or advice. Please contact Peter Hogan at Darlington, Nicola Bellerby at Durham or Terry Doyle at York.

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