A new survey from insurer, Zurich has revealed the extent of how late payments are affecting British businesses the length and breadth of the country.
Researching more than 1,000 business owners in the UK it has been discovered that a whopping 52% of businesses are owed money which is rightfully theirs.
Alarmingly, a massive 21% of businesses are owed more than £25,000 and almost 1 in 10 are due more than £100,000. To sum it up, in total, UK businesses are owed over £45 billion as customers delay in paying their invoices in order to save their own cash positions.
The worsening problem of late payment continues to affect the performance of SMEs across the whole of the UK. 39% of businesses affected by late payment reported that it directly impacted on their cash flow, with 24% having to manage their finances by using their overdraft to cover it.
It is important to note that 64% of businesses experience delays of more than one month, almost 50% have to wait 3 months for payment and 14% are having to wait at least 6 months to receive their outstanding monies.
If you are a commercial business struggling to get your clients to settle their accounts, or have a client who is consistently slow in paying their bills, give Cobra Financial Solutions a call to find out how we can help get back what is rightfully yours
As it stands, the onus truly remains with businesses to ensure their accounts are settled on time, and consistently. This means doing all of the things needed to ensure you receive monies owed to you. Don’t be afraid to take control, especially if late payments are impacting your cash flow or resources.