Only 52 per cent of invoices sent by micro businesses are paid on time
Just 52 per cent of invoices sent during 2017 were paid on time or within three days of payment deadlines, according to research by accountancy software firm FreeAgent.
FreeAgent analysed data from a sample of its 50,000-strong customer base and analysed thousands of invoices sent last year. Separate research by FreeAgent has also revealed that a quarter of Britain’s micro businesses have had to wait between three and six months, while 10 per cent had a client who has never paid them at all.
Ed Molyneux, CEO and co-founder of FreeAgent, said: “Micro-business owners don’t have the luxury of being able to absorb late payments into their accounts – they need to get paid promptly to keep their cash flow healthy. Late payments put freelancers and micro-businesses at significant risk, and we need stricter measures in place to tackle late payment culture.”
MD of Regency Factors, Maurice Craft “Payment delays undermine companies’ ability to take on additional business or invest in new productive capacity. Companies seeing new opportunities as the economy picks up can find themselves unwittingly overtrading for lack of cash flow.”
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