Small firms ‘in jeopardy’ as they wait for £24bn in late payments – up more than £10bn in a year
The value of late payments the UK’s smallest companies are waiting for is up more than £10billion in just a year, figures reveal.
Small and medium-sized companies are waiting to receive £23.4billion, up from £13billion in 2018, says retail payment authority Pay UK.
More than half are chasing money owed, with the bill for trying to collect it hitting £4.4billion.
Late payments: Small and medium-sized companies are waiting to receive £23.4bn, up from £13bn in 2018, says retail payment authority Pay UK
Many small businesses warn that it puts them in jeopardy.
Pay UK said the average amount owed to each firm had risen from £17,000 last year to £25,000 today.
Paul Horlock, Pay UK’s chief executive, said: ‘It is concerning so many smaller businesses are struggling because of late payments, especially as there are so many ways they can get paid.’
The figures emerged a day after Labour pledged to tackle late payments, while Tory ministers have suggested big companies should have directors whose sole task is to shorten payment times.