The majority of the UK’s small enterprises have been affected by late payments, it has been discovered, which may concern umbrella company members.
New research conducted by NatWest and the Royal Bank of Scotland (RBS) found that 71 per cent of small firms have been paid after the agreed date in the last 12 months, with the total value of late invoices amounting to around £62.87 billion.
The study also showed 12 per cent of firms said more than 60 per cent of their invoices are paid late, while around £15.7 billion in payments are over 120 days in arrears.
In addition, it revealed that just 45 per cent of small enterprises have taken steps such as invoice discounting and factoring to improve their cashflow.
Peter Ibbetson, chairman of small business at NatWest and RBS, said: “Bad debts and late payment of invoices are endemic problems for UK businesses.”
Earlier this month, the Forum of Private Business claimed that 35.5 per cent of small firms’ turnover is tied up in late payments.
