Late Payments a Headache for Owner Managed Businesses

According to a survey conducted by Banking group Close Brothers, 66% of owner managed businesses are feeling the effect of clients who delay paying their bills. The survey drew responses from 900 small business owners and found that they suffered through damage to their business reputation, credit rating and securing further access to funding. For a growing business with limited resources these affects can be lethal. 74% of the respondents didn’t feel that there is suitable legislation in place to counteract slow payment with 1 in 4 firms forced to seek legal advice and suffer further costs. The study highlighted transport (78%), manufacturing (74%) and printing (73%) were the worst affected by late payments.