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Independent businesses across the UK are suffering from cash flow problems as a result of late payments on invoices.
Research carried out over five years by MarketInvoice showed that these cash flow problems appear to be UK specific, and late payment totals are increasing year on year.
The report estimates that British small and medium sized enterprises are currently owed more than half a trillion pounds in unpaid invoices.
In 2013, approximately 45% of invoices in the UK were paid late, however just two years later the total had increased to nearly two thirds of all invoices. The figures in Europe, not including the UK, saw a decrease from around 60% to 40% in the same time-scale.
On average, invoices that were settled after their due date were late by 6 days, however invoices submitted to supermarkets fared worse. The ‘big five’ supermarkets paid almost 70% of their invoices late, overdue on average by over a week.
The findings showed that there was a definite divide between the north and south of the UK. Businesses in the North, in particular Yorkshire and the North West, were paid considerably later than more Southern companies.
Unpaid invoices can be damaging, especially to small businesses. It is vital that all companies overcome their cash flow problems in order to grow, and late payment can delay the purchase of essential expenses or even payroll.
If your small business is suffering from cash flow problems due to unpaid invoices, a cash advance from Quick Capital could quickly and easily improve your cash flow. Talk to one of our friendly advisors today to see how much funding you can receive to boost your business cash flow.