Many small businesses operating in the red
Just 49.5% of small businesses in the UK were operating in positive cash flow last year, according to Xero"s latest Small Business Insights index, which also notes that, on average, SME"s 30-day invoices were paid after 46 days, squeezing many smaller businesses. Vicky Pryce, economist and previous director general for economics at the Department for Business, Innovation and Skills, cautioned: "The impact of late payments on the economy cannot be exaggerated". Elsewhere, a poll by the Institute of Directors reveals three in ten business leaders see "excessively bureaucratic payments systems" as the main reason for late payments. The survey of company directors found that almost half have suffered due to the issue in the last six months.
Source: City AM (01/05/2018)