I saw this article in Insider magazine and thought it worth sharing.
“Small and medium-sized businesses are owed a record £33.6bn in late payments, according to new research by payment company Bacs.
The amount owed is a rise of 10 per cent in the past 12 months and the highest figure since records began in September 2007. The report said that small companies are owed an average of £39,000 and are waiting up to two months to get paid.
Mike Hutchinson, head of marketing at Bacs, said: “The issue of late payment is continuing to get worse for SMEs in the UK at a time when they need to be able to plan ahead for growth and ensure a strong cashflow.”
Bacs said the worst offenders for late payment are large companies, which are behind 48 per cent of SME late payment debt. The hardest hit sector is retail and distribution which is owed £16.6bn.
The report added that half of all UK small companies are currently experiencing late payments.”
It’s not the Greeks who are affecting the UK economy, but the banks who are not releasing funding to help small companies expand, and bigger companies directly affecting the cashflows of smaller ones. It has a knock on effect all the way down the line, so why isn’t there legislation in place to stop it happening?