£14.9bn is the estimated amount of money being chased by UK small businesses (SME) as a result of late payment, an increase of £1bn on the previous 6 months.
A survey carried out by Leberis, across 440 companies, identified 58% of those surveyed advised they were owed up to £10,000, with 25% confirming they have more than £20,000 outstanding due to late payment.
In addition to the obvious issue late payment brings to small companies cash flow, the impact of businesses not being paid on time ties up resources and prevents investment and growth. The research also highlighted nearly three quarters (72%) of those who responded spent 3 days a month chasing outstanding invoices. Resource, money and time many SME’s have to re-assign from other key business functions. 50% stated outstanding debt had delayed investment in staff, equipment and business expansion. Bridging the financial gap is a constant juggling act.
Credit Insurance can help support small businesses experiencing late payments or bad debt. Not only does it offer replacement cash in the event a debtor does not pay, minimising any losses but also can relieve a business from the time consuming task of chasing outstanding debts via collection services. This allows the company to focus on its business whilst the debt is pursued by experts.
Trade Credit Insurance protects businesses from bad debts caused by the insolvency or default of a business customer. As specialist brokers, Acumen can arrange bespoke credit insurance policies to suit your business and trade sector. To find out more on how Credit Insurance can assist your business, contact us today.