50,000 small firms fail as a result of late payment
Late payments contribute to the failure of more than 50,000 small firms every year, according to a report by the Federation of Small Businesses (FSB). The report has revealed that an average of 30% of payments owed to small firms are late, costing the UK economy £2.5 billion each year. More than a third (37%) of small firms have experienced cash-flow problems as a result of late payment, while 30% have been forced to rely on their overdrafts. A further 20% of small business owners said that late payment has hit their firm's profits.