Worrying research from PayPal and Xero has revealed that 37 per cent of small business owners have considered closing their company because of cash flow issues caused by late payments.
The research highlights the scale of the late payments challenge that British businesses face, who are owed an average of £23,360 in overdue invoices and are having to wait on average 14 days after the due date to be paid.
The news comes at a time when reports continue to emerge concerning the UK’s so-called ‘late payments crisis’ – a problem which is becoming more and more widespread as the years go by.
According to up-to-date figures, more than a quarter (26 per cent) of small firms have been forced to wait between three and six months for invoices to be paid, while a further 10 per cent have encountered clients who have never paid them at all.
What impact can late payments have on a business?
Late payments can have a number of worrying implications for small and medium-sized enterprises (SMEs) – causing cash flow complications and eating up business owners’ time, leaving them chasing unpaid invoices instead of focusing on the day-to-day running and development of their businesses.
In the worst cases, unpaid invoices can force a once-prosperous firm into financial difficulties.
Late payments often build up rapidly and lead to disastrous consequences, so prompt action is advised.
What can businesses do to combat the problem?
One of the best ways businesses can combat the issue of late payments is to seek specialist legal advice with regards to debt recovery.
By speaking to an expert solicitor who is well-versed in this area of the law, it is possible for businesses to deal with their invoice debts quickly and efficiently, in a way which causes minimum disruption to their day-to-day operations.
At Palmers Solicitors our specialist team provide a debt recovery service that is straightforward, effective and can help your business deal with its invoice debts. Our focus is to recover your debts on a value for money, fixed-fee basis.
If you have a number of unpaid invoices or an ever-growing aged debt ledger, we offer a free 30 minute debt recovery assessment to advise you on collection and recovery.
To find out how Palmers Solicitors can help, please get in touch today.