A report by the Bankers Automated Clearing Services (Bacs) found that the late payment burden on UK small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants, has risen £2.6bn in the past 12 month to an staggering £18.6bn.
There is good news and there is bad news – the good news is that small businesses suffering from late payments has decreased from 59% to 51% in the past 12 month.
Combine this fact with the findings in the first paragraph and you will easily see the bad news, or as I would put it the really bad news. The average amount now owed to each company at a anyone time is 30,000, up from 22,000 in 2006. It is not surprising that 29% of the respondents to the survey said they could go bust if faced with overdue invoices of £20,000 or more.
While I have no illusions that this current government shall support small business, as some in the survey suggested that public sector bodies were the worst late payers. But maybe the Shadow Chancellor Mr George Osborne, could get his teeth into this problem.
It is not without reason that we have fallen behind France in the economic world-ranking. ST.