A NEW survey has found 46 per cent of small businesses in the North-East are adversely affected by late payments, with 39 per cent owed more than £20,000.
The Close Brothers Business Barometer, surveying more than 700 small crossindustry business owners and managers in the UK and Ireland, found it affected the day-to-day cash flow management of 57 per cent of businesses, while 26 per cent had to rein in necessary spending.
Four per cent said it threatened their ability to trade.
David Paget, regional sales director for Close Brothers Invoice Finance in the North East, said: “This increasing debt burden is a worrying situation for small local firms.
“It’s a situation that needs to be addressed, and alternative funding methods such as invoice and asset finance present a solution.
“Invoice finance works to bridge the gap between invoicing and receiving payment.
We are working with local firms to raise awareness and ensure that they have access to the guidance and funding they need to manage their cash flow and make the most of what assets they have at their disposal.”
The survey also revealed that ten per cent of North- East firms spend more than ten hours every month chasing up unpaid bills.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here