SMEs Owed £14.9 Billion in Late Payments, and it’s getting worse. Contact our Commercial Debt Recovery Solicitors for help
Research by Liberis in April 2018 showed that £14.9 billion was owed to businesses as a result of late payment of invoices, and it’s getting worse. In the six months prior, the figure was £1 billion lower. Averaging this figure across the UK’s 5.7 million small and medium sized businesses means that the average amount owed to each business was £11,000, with the figure being much higher for many businesses. Figures of this magnitude can lead to severe cash flow problems and insolvency, so don’t leave it too late to call our commercial debt recovery solicitors in to collect your late payments.
The Late Payment Problem is Getting Worse
SMEs are the Backbone of the UK’s economy
An SME is defined as having under 250 employees and a turnover of no more than £40 million. There are 5.7 million SMEs in the UK, and they account for 99% of the country’s businesses. The effect of the £14.9 billion owed in late payments is spread across a huge number of firms, therefore, which leads to restricted cash flow and the beginning of a vicious circle pushing many to breaking point. Further figures from the Liberis research showed that:
- 50% of respondents claimed that aged debt has hindered investment in the growth of their business.
- 72% of respondents said that they spend 3 or more days per month chasing late payments, time which could be spent growing the business.
We have also heard stories about directors going without some of their salary as a result of late payments, company credit cards being used to pay creditors and staff being paid late.
Debt Recovery Can be Difficult and Time Consuming
Good credit control is key to minimising late payments, but even those companies with good credit control processes can suffer from late payments at times. Plus, chasing late payments is almost always a difficult and time-consuming process, and the longer a late payment is left, the more difficult it becomes to recover. Click here to see our article about how long an unpaid invoice can still be legally be recovered.
Our Commercial Debt Recovery Solicitors Have the Experience and Expertise to Recover your Late Payments Quickly
At Lane and Co, we know just how frustrating and dangerous it can be for a business to deliver the goods or services that have been ordered, at the price agreed and on time, and then wait way beyond the due date to get paid. Our solicitors have been recovering late payments for our business clients for 40 years, which makes us the longest established firm of specialist debt recovery solicitors in the UK. Unlike many firms of solicitors, debt recovery is all we do, so you know that when you use us to recover your late payments you are getting the expertise and experience that has recovered £10’s of millions for our clients.
Click here to see some our testimonials. If you like what you see, and your business is suffering from late payments, please contact us or call us on 01922 700730 to instruct us, or just for an initial chat. We’re geared up for speed and efficiency, so if a general instruction is received before 3.30pm, the first Solicitor’s Letters Before Action go out on the same day.
It doesn’t matter what type of business your company is. We will implement a tailored service for your needs. Our top line is to make sure your bottom line is not affected by late payment.