NEWS

Late payments affect almost half of small businesses

Published:
17
May 2018

Almost half of small and medium-sized businesses have struggled with late payments in the last year, according to research by the Institute of Directors (IoD). 

Of the 787 business leaders surveyed, 48% have faced issues with late payments since April 2017. 

Almost a third (31%) said this was the result of an “excessively bureaucratic payments system” in the company being invoiced.

Others noted disparity between the practices of smaller and larger businesses, with 23% claiming larger firms in their supply chain used “grossly unfair” terms or practices. 

Around one in three (30%) payments to small businesses are late and the average value of each payment is £6,142. 

In December 2017, small business commissioner Paul Uppal launched a complaints handling service which was intended to help businesses resolve payment disputes.

However, only 1% of respondents to the IoD survey thought mediation by the small business commissioner would be the best way to address late payments.

Edwin Morgan, director of policy at the IoD, said: 

“It is deeply disturbing that so many businesses have to struggle to claim the money they are owed. 

“Chasing late payments can have a particularly damaging effect on small companies, sapping resources and hurting their productivity.” 

Get in touch to discuss any concerns with your business.
Business news
Finsbury Robinson

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare.

Contact Us

Sign up to our
Monthly Business Newsletter

Sign up to receive our monthly Business Newsletter that will keep you up to date with everything going on in accounting, tax, and finance. 

Finsbury Robinson Services

Sign up to our Monthly Business Newsletter

Find News Articles by Category

© Finsbury Robinson Ltd 2019

Registered Company No.  04749693

News HomeSME Business
Late payments affect almost half of small businesses
Show/Hide
To get in touch use our Quick Contact Bar:

Monday                 8:30AM – 5:30PM
Tuesday                8:30AM – 5:30PM
Wednesday          8:30AM – 5:30PM
Thursday              8:30AM – 5:30PM
Friday                 9:00AM – 12:30PM
Saturday                                 Closed
Sunday                                   Closed

Finsbury Robinson
237 Westcombe Hill
Blackheath
London
SE3 7DW