£255 billion owed to SMEs in late payment » SMEInsider

£255 billion owed to SMEs in late payment

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SMEs are waiting for up to £255 billion in late payments, with more than half owed money, a survey has found.

Zurich polled more than 600 SMEs about late payment, which 67 per cent of respondents said was leading firms to close down.

One in five (20 per cent) reported that they are owed more than £25,000 while almost one in 10 have more than £100,000 outstanding. It is estimated that more than 43,000 SMEs are owed more than £1 million.

Unsurprisingly, a large proportion – 41 per cent – said late payers placed a significant pressure on their cash flow.

Government must step in to help

Almost half think the government could be doing more to help combat the problem of late payment – with 49 per cent saying ministers aren’t doing enough.

Head of SME at Zurich, Jason Eatock, said: “We have been warned about a ‘cocktail of threats’ to the economy, and small businesses will need all the capital at their disposal to weather this potential storm.

“In an uncertain economic climate, it is imperative that SMEs receive the support and guidance they need to adequately address the central concerns threatening the viability of their businesses.”

  • Ashok De Froberville

    thx for the post. Are there any action from UK government, any laws … like in France?