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UK SMEs owed £23.4 billion in late payments

UK SMEs owed £23.4 billion in late payments

Late payment debts owed to the UK’s small to medium-sized enterprises (SMEs) now total £23.4 billion. New research from Pay.UK. has found.

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.’ 

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