SME trade debt hits £6.3 trillion » SMEInsider

SME trade debt hits £6.3 trillion

The combined trade debts of UK SMEs now stands at almost three times the country’s GDP, a new report has found.

Using data from Companies House, Debt Guard Solicitors showed that, in 2013, the average SME carried debts of £1.3m, with organisations struggling to secure payment from clients and customers. Those with fewer than 10 staff were most commonly affected, especially in London, the North East and Yorkshire, where these businesses held an average trade debt of £100,000. Nationally, 12% of micro-SMEs reported severed debt trouble.

Mark Burgess, Chief Operating Officer of Debt Guard Solicitors, urged SMEs to seek support in getting paid. “This research highlights there is a highly varied national trade debt picture emerging within the SME marketplace, created by unpaid and outstanding invoices,” he said.

In the past, SMEs have often been lumped together when it comes to debt management, but it is clear that micro-SMEs in particular need much greater support in this respect.”