UK businesses lose billions in late payments

UK sole traders and mobile micro businesses could be owed up to £2.5bn each year by late-paying customers.

The Chasing Payments report surveyed over 1,000 mobile tradespeople and micro businesses in the UK. It found that 75% of respondents have had a late payment in the last 12 months.

The research showed that tradespeople are owed an average of £799 in outstanding payments per year and write off an average of £770 per year in outstanding payments.

There are 3.137m skilled tradespeople currently working in the UK. Once the data is extrapolated across the country, these micro businesses are owed a total of £2.5bn per year, writing off up to £2.4bn of that debt.
Individual consumers have been identified as the worst culprits for late payments. Micro businesses have reported receiving a wide variety of excuses for not paying on time, including “the goat ate my cheque book” and “I fell over on the way to the bank”.

UK sole traders and mobile microbusinesses could be owed up to £2.5bn each year by late-paying customers -

According to the research, tradesmen often wait up to 15 weeks to get paid. Builders and plumbers are among the worst affected, with 88% and 90% respectively reporting late payments. For plumbers the wait can be up to 27 weeks.

Among those who have been paid late in the last 12 months, 45% have experienced cash-flow problems.

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Source: Telegraph