SME owners 'worried about late payment'
Commercial insurance
22nd September 2009
Late payment is now top of the list of business concerns among owners of small and medium-sized enterprises (SMEs), new research has indicated.
The Economic Downturn Panel poll by the Forum of Private Business (FPB) showed that cash flow worries are affecting many companies during the recession, as a fall in bank lending squeezes finances.
"Our research suggests that poor payment, which has always been a problem, is now threatening the very survival of many businesses," FPB chief executive Phil Orford warned.
Nearly one in four (23 per cent) bosses polled chose late payment as the "key issue" affecting them and 42 per cent reported that bills were being settled less promptly in recent months.
It was chosen as the major concern ahead of falling sales (20 per cent) and health and safety compliance (11 per cent), something that may interest insurance for business customers.
Meanwhile, GrowthBusiness.co.uk editor Nick Britton has warned firms that "the cheque's in the post" could be used as an excuse for late payments during Royal Mail strikes.
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