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UK small businesses spend £11bn chasing payments – report

UK Money - Improve late payments to suppliers - SantanderCB

New figures suggest that the UK government`s measures to improve late payments to suppliers have had some impact, but the burden on small businesses of chasing those payments remains severe. According to direct debit company Bacs, the total owed in late payments to UK companies of all sizes has fallen from an estimated £45bn to £31bn since July 2014. For smaller businesses (employing fewer than 250 people) late payments totalled £26.8bn, down from £32.4bn in July 2014. But Bacs notes that these companies were spending nearly £11bn a year – an average of £11,500 each or £955 a month - in their attempts to recover overdue payments, up from £8.2bn in July 2014. Some 80% of all companies which experience late payments say they are being kept waiting one month or longer beyond their agreed terms before receiving payment, and 24% admit that late payments are forcing them to rely on bank overdrafts.

 

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