British SMEs writing off huge debt
Britain’s SMEs wrote off a combined £5.8bn in the last financial year, research commissioned by Direct Line for Business shows. Of those polled, 19% said they had written off debts at an estimated average loss of £31,330, while 9% claimed to have written off debts in excess of £100,000. When asked why debts were written off, 29% said the supplier had become insolvent and was unable to pay the monies owed, with 17% saying they did not think that the supplier would have sufficient funds to cover the debt. It was shown that 82% of SMEs currently have balances outstanding from their debtors, with the average business estimated to be owed £62,957. Of firms that had written off debts in the 12-month period, 40% revealed that they don’t even know how much money they are owed by their debtors.
Source: Small Business (22/08/2016)