More than a quarter of small businesses in Yorkshire and Humberside are adversely affected by late payments, a survey has revealed.
Of those businesses that have experienced problems due to late payments, 71 per cent said that it impacts on their day-to-day cash flow management, seven per cent said it has meant they have had to rein in necessary spending and a further seven per cent say it threatens their ability to trade.
The figures come from the latest Close Brothers Business Barometer, a quarterly survey that canvasses the opinion of business owners and managers across Great Britain and Ireland.
Lee Hayes, regional sales director said: “This increasing debt burden is a worrying situation for small firms.
“Of the businesses we spoke to that are facing problems due to unpaid invoices, 57 per cent say that they are owed more than £20,000. This is constricting their cash flow and the knock-on effect is that it prevents them from being able to pay their suppliers on time, thus creating a vicious cycle.”
The survey also revealed that 10 per cent of firms in the region spend more than 10 hours a month chasing unpaid bills.