The cost of late payments to small businesses has more than doubled in two years, reaching £1.6 billion at the end of 2023, according to a report by Xero. This figure, which is more than double the 2021 estimate, reflects the cost to the small business of not having access to the unpaid invoice funds and is in addition to what they are owed. The increase is largely due to rising interest rates and an increase in late payment times for those using small business suppliers.

 

On average, small businesses were paid 6.1 days beyond the agreed terms during the last three months of 2023. 

 

As firms continue to face a challenging macroeconomic environment, it is imperative to credit check and monitor both existing customers and new prospects. Credit Assist can help you avoid delinquent payments and bad debt by providing the most up-to-date, accurate and comprehensive company payment profiles available on the market. We track over 5 billion transactions per year so you can identify how quickly your customers’ invoices are currently being settled against negotiated terms.

 

Call us today on 01604 217333 or email at [email protected] to protect your business against late payments and bad debt.