Click button to open menu

UK SMEs owed £23.4 billion in late payments

02 Dec 2019

Late payment debts owed to the UK's small to medium-sized enterprises (SMEs) now total £23.4 billion, according to new research from Pay.UK.

A survey conducted by Pay.UK, which runs the BACS direct credit and direct debit payment services, showed that debts due from late payments have soared by over £10 billion from the £13 billion total reported last year.

Over half of SMEs have experienced overdue payments, and the average debt burden per business has increased to £25,000.

Some 78% of SMEs say they are being forced to wait a month beyond agreed payment terms, while another 45% are being kept waiting over two months. In addition, the bill for chasing late payments has now reached £4.4 billion a year.

Commenting on the research, Paul Horlock, CEO of Pay.UK, said: 'It is concerning that so many smaller businesses are struggling because of late payments in 2019, especially as there are so many ways they can now get paid. 

'Offering customers a choice of payment or automated options can help remove barriers to make sure a bill is settled on time.' 

Registered to carry out work in England and Wales and regulated for a range of investment business activities by the Institute of Chartered Accountants in England & Wales.

Details about our audit registration can be viewed at www.auditregister.org.uk for the UK under reference number C006856925

Home | Contact us | Accessibility | Disclaimer | Help | Site map |

© 2024 Greenaway Chartered Accountants. All rights reserved.

Greenaway Chartered Accountants, 150 High Street, Sevenoaks, Kent TN13 1XE

We use cookies on this website, you can find more information about cookies here.