SMEs are currently owed an average of £27,214 in late payments according to new research from Intuit QuickBooks. The research found that the problem is growing and the most common reason an invoice goes unpaid is because it was simply forgotten (23%) – although the supplier experiencing their own cash flow issues and not being able to pay comes in a close second (20%).

 

Late payments also damage SMEs’ future chances of business success. Amongst those impacted, late payments have resulted in SMEs being unable to reinvest in the business (26%) or achieve their business objectives (20%). There is also a knock-on effect as 26% have not been able to pay an invoice to another small business (26%) or pay their own suppliers (25%).

 

If you would like to minimise the risks of incurring bad debt, please contact Credit Assist today on 01604 217333 or at [email protected] to assess the financial health of your clients and suppliers.