Late payments stifling small businesses

A recent survey, which more than 1,000 small businesses took part in, revealed that small businesses were struggling to ensure their invoices were paid on time.

The research, carried out by Crossflow Payments, revealed that 15% of all turnover received by small firms was paid late in 2016.

Scarily, almost 25% stating that they don’t normally have their invoices settled within the agreed time, and half of those suggesting that on average it is ten days or more beyond their payment terms.

Similar research was carried out by Zurich, in their SME Risk Index, partnered by YouGov. This survey involved 10,000 small businesses and concluded the same. 21% of the 10,000 surveyed were owed more than £25,000, and furthermore 9% were owed more than £100,000.

Ian Orgill, of CHW, said: “Many businesses look to achieve external funding to help their businesses, before considering their debtors book. Credit control can often be an unpleasant task and difficult for some business owners. Our team are impartial, therefore via our outsourcing department, can provide this service.

“Indeed, there are some pieces of cloud software that are available to business owners that automate the credit chasing process.”

These late payments are having a direct impact on not just the small business market, but the wider economy as well. When the small business owners were asked what they would spend this money on; 22% said they would increase their marketing and sales budget, in turn generating more sales, 17% said they would hire more staff and 17% would increase the wages of current employees.

If you’re looking for accountancy advice as a start-up company or are struggling to pay your invoices on time, check out our LaunCHWorks package for start-ups. You may also want to read our don’t miss the deadlines article which is a growing concern for those who file their tax returns late.


This article is for general guidance only. It provides an outline, and may not include points which are important to your situation. You should not depend on this blog without taking advice based on the full facts of your case. The information given was correct at the time of publication.

DID YOU FIND THIS USEFUL?

Share it with your network:  

Want more great content?
Sign up to our newsletter

    Follow us

    Tweets by @CHW-accounting

    CHW-Accounting
    @chw-accounting


    Twitter: chw_accounting

    Read enough?

    Want to find out how we can help you and your business? Get in touch today and let's have a chat.

    WHAT'S THE NEWS?

    Grab a biscuit and a brew and read our latest news.

    19 February 2024

    Tax changes – What’s new in 2024?

    by

    We are now well and truly into 2024 and before you know it the end of the 2023/24 tax year on 5 April will be upon…


    Read more >

    12 February 2024

    National minimum wage – a quick guide to the...

    by

    The government sets a national minimum wage and a national living wage to guarantee that workers get a minimum standard of pay. It is a legal…


    Read more >

    7 February 2024

    HMRC to target undeclared dividend payments

    by

    HMRC have advised the Chartered Institute of Taxation (CIOT) that they have commenced a ‘One to Many’ letter campaign directed at taxpayers who HMRC suspect may…


    Read more >

    7 February 2024

    One week on from Self-Assessment deadline

    by

    We are now a week on from the self-assessment filing deadline of 31 January and figures show that more than double the number of taxpayers failed…


    Read more >

    5 January 2024

    Cut to National Insurance from 6th January 2024

    by

    From Saturday 6 January, the average earner will be almost £450 a year better off according to the government.  However, the reality is that due to…


    Read more >

    YOUR CHALLENGES

    No matter what your challenge is, we’ve probably dealt with it before.



    Need an Accountant?

    Get in touch >


    Need an Accountant?

    Get in touch >


    Tax issues?

    Find out more >


    Tax issues?

    Find out more >


    Trying to grow your business?

    We can help >


    Trying to grow your business?

    We can help >


    Managing cashflow?

    We can help >


    Managing cashflow?

    We can help >


    Starting a business?

    We can help >


    Starting a business?

    We can help >


    Looking for funding?

    Need help with funding? >


    Looking for funding?

    Need help with funding? >


    Buying or selling a business?

    We can help >


    Buying or selling a business?

    We can help >


    Adopt the cloud?

    We can help >


    Adopt the cloud?

    We can help >


    What else can we do for you?

    We can help >


    What else can we do for you?

    We can help >
    CONTACT US

    Get in touch, no hard sell, just a brew, a biscuit and a chat.