An increasing amount of SMEs are having to turn down business due to worries associated with late payments, a new survey has revealed.
More than one in five SMEs have decided against doing business with customers who haven't paid promptly in the past, as the issue of late payments continues to cause woe for small business owners.
85% of SMEs have been affected by late payments over the last two years, whilst almost half say they have dealt with a customer who has settled invoices late three or more times in a year.
The research also indicated that 30% of business owners are having to plough in their own personal resources in a bid to boost cashflow, with 11% suggesting that their company has almost had to fold due to late payments.
Mark Millhouse, Corporate Manager for SBF, said that small businesses face considerable pressures from late payments: "Especially with the depressed state of the economy, it is vital that small businesses keep their cashflow going in the right direction".
He continued: "Unfortunately late payments still seem to be causing considerable headaches for business owners, hindering growth plans and the wider economy in the process".
How to deal with late payments
Although late payments can prove difficult to eradicate completely, there are ways in which business owners can reduce the strain caused by them.
Our Sales & Marketing Director, Andy Grantham has compiled a list of top tips to help reduce the likelihood of late payments as part of his regular series of business finance blogs.
If you'd like to speak to someone about how to improve your cashflow, why not give us a call on 0845 602 9354 or drop us an email at info@skiptonbf.co.uk with your query.