Many small and medium-sized enterprises (SMEs) are suffering as a result of late payments into their
business bank accounts, according to new research.
A study conducted by NatWest and The Royal Bank of Scotland indicated that some 71 per cent of SMEs had not received funds owed to them on time during the last year.
The findings revealed that small businesses had to wait an average of 41 days longer than their agreed terms before being paid, with around £62 billion still owing past payment deadline.
Speaking to the BBC, Stephen Alambritis of the Federation of Small Businesses (FSB) said late payments into business accounts were a "huge problem".
"When a small firm is paid late, it's forced to go to the bank and with the banks being a bit tetchy at the moment, it's a difficult position," he explained.
He added that small firms are being exploited as lenders, given that banks themselves are not readily granting loans and overdrafts.
Peter Ibbetson, chairman of small
business banking at RBS, urged SMEs to make use of services from their bank help firms overcome such issues.
According to the FSB, around 4,000 businesses in the UK collapsed in 2008 as a result of late payments.
