Infographic: The Real Cost Of Late Payments For UK SMEs (2019) Dec 19, 2019Views: 422
Running a successful business is a challenge in itself, but late-paying customers can add significant pressure, especially to smaller companies. The infographic looks at the cost late payments have on SMEs in the UK.
According to recent stats published in 2019, businesses were owed £23.4 billion in late payments, a significant rise of £13 billion from the previous year. A whopping 54% of businesses have experienced overdue payments at some point.
Chasing payments is costly for businesses. As time and resource are used, the cost of this will need to come out of the businesses pocket. In fact, £4.4 billion a year is spent by businesses collecting money that they are owed. This can put an extra cash-flow strain on the company.
Figures suggest that the average late payment debt burden is £25,000 per company. Wholesale trade, administration and support, transport, postal and warehouse sectors are the top 3 most affected by late payments.
The bottom line is the impact of late payments is dramatic and has a damaging domino-style effect across the business from failure to pay day-to-day bills to paying staff wages on time. Some businesses can not sustain ongoing late payments, and this results in over 50,000 company closures each year.
Has your business been affected by late payments?
Created by Sme Invoice Finance
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