SME late payments increase

News Article - 09 January 2008
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Small to medium-sized businesses (SMEs) are experiencing £18.6 billion worth of late payments, according to a new survey.

Reported by the Credit Control Journal, Bacs Payment Schemes Limited (Bacs) found that the figure is a £2.6 billion increase on last year.

However, the research also revealed that the number of SME owners who said they are experiencing late payment problems has decreased from 59 per cent in 2006 to 51 per cent.

"British SMEs need to be much smarter about tackling late payments and should use a range of solutions, including automated payments, to stamp out the problem once and for all," commented Michael Chambers, managing director of Bacs.

The research found that nearly one-fifth of SMEs now employ someone to chase late payments and therefore control costs.

Mr Chambers said this would only result in a stronger business if the right tactics are not applied from the start.

Bank of Scotland Business Banking recently advised business owners to try and control costs this year, as four-fifths of SMEs think the price of running a firm will increase this year.

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