Late payments impact on
GB SMEs
Current view: Statistics by regionClick to view results by sector
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National overview in June 2010:
- 45% of SMEs nationwide have experienced late payments
- £32,000: the average amount owed to a British SME at any one time, up from £25,000 in December 2009
- 769,000 British SMEs have experienced late payments at one time or another, down from 961,000 in December 2009
- £24.6 billion: the total amount owed in late payments to British SMEs, up nearly £600 million on December 2009 figures
- 39.4 days: the length of time beyond agreed terms that British SMEs are waiting for payment, down from 41 days in December 2009
- 56% of British SMEs do not expect the Government to take action regarding late payments
- 26% ask for payment on receipt of invoice
- 48% of SMEs nationwide ask for payment 30 days / end of month after receipt of invoice
- 37% of British SMEs cite larger companies as the worst culprits of late payments
- 11% of SMEs identified that Government and not-for-profit organisations are responsible for late payment, up from 6% in December 2009
- 79% of SMEs continue to use cheques to pay other organisations, and 76% still receiving payment by cheque
North:
- 27% of SMEs in the North have experienced late payments, nearly half as much as in December 2009 (51%)
- £57,000: the average amount owed in late payments to SMEs in the North at any one time, almost double that in December 2009 (£29,000)
- 128,000 SMEs in the North have experienced late payments, down from 236,000 in December 2009
- £7.3 billion: the total amount owed in late payments at any one time to SMEs in the North, up from £6.8 billion in December 2009
- 31.3 days: the length of time beyond agreed terms that SMEs in the North are waiting for payment, down from 35 days in December 2009
- 24% ask for payment on receipt of invoice
- 48% of SMEs in the North ask for payment 30 days / end of month after receipt of invoice
- 52% of SMEs in the North cite larger companies as the worst culprits of late payments, up from 38% in December 2009
- 3% of SMEs in the North identified that Government and not-for-profit organisations are most guilty of late payment
- 64% of SMEs in the North do not expect the Government to take action regarding late payments
Midlands:
- 56% of SMEs in the Midlands have experienced late payments, almost the same as December 2009 (53%)
- £17,000: the average amount owed in late payments to SMEs in the Midlands at any one time, down from £23,000 in December 2009
- 285,000 SMEs in the Midlands have experienced late payments, up from 271,000 in December 2009
- £4.8 billion: the total amount owed in late payments at any one time to SMEs in the Midlands, down from £6.2 billion in December 2009
- 34.4 days: the length of time the average SME in the Midlands waits beyond agreed terms for payment, down from 42.5 days in December 2009
- 32% ask for payment on receipt of invoice
- 50% of SMEs in the Midlands ask for payment 30 days / end of month after receipt of invoice
- 29% of SMEs in the Midlands cite larger companies as the worst culprits of late payment
- 9% of SMEs in the Midlands identified that Government and not-for-profit organisations are most guilty of late payment
- 52% of SMEs in the Midlands do not expect the Government to take action regarding late payments
South:
- 49% of SMEs in the South have experienced late payments, down from 63% in December 2009
- £35,000: the average amount owed in late payments at any one time to SMEs in the South, up from £24,000 in December 2009
- 356,000 SMEs in the South have experienced late payments, down from 454,000 in December 2009
- £12.5 billion: the total amount owed in late payments at any one time to SMEs in the South, up from £10.9 billion in December 2009
- 46.9 days: the length of time the average SME in the South waits beyond agreed terms for payment, up from 43.7 days in December 2009
- 23% ask for payment on receipt of invoice
- 46% of SMEs in the South ask for payment 30 days / end of month after receipt of invoice
- 39% of SMEs in the South cite larger companies as the worst culprits of late payment
- 16% of SMEs in the South identified that Government and not-for-profit organisations are most guilty of late payment, almost three times greater than in December 2009
- 54% of SMEs in the South do not expect the Government to take action regarding late payments
About the research:
Bacs conducted independent market research with business to business specialists BDRC Continental. In June 2010, we conducted 477 telephone interviews with FDs, MDs, and owners of GB SMEs. The sample was representative of the GB SME audience and was representatively divided as follows, North = 126 interviews; Midlands = 107; South = 244; Manufacturing sector = 136; Distribution sector = 179; Services sector = 162.