UK Contractors: UK smaller sized firms urged to keep on top of unpaid invoices
Smaller sized businesses, such as Limited company contractors, are being urged by experts to keep on top of and chase up unpaid invoices.
According to a survey carried out by Bibby Financial Services, more than a third of the 1,000 smaller sized firms asked admitted to being ‘in the dark’ with regards to how much money they are owed in unpaid invoices.
Of those surveyed, 36% said that they didn’t know how much they have outstanding.
Of those who did know, 31% said that they were owed more than £20,000, 14% said they were owed more than £50,000, and six per cent admitted they were owed in excess of £100,000.
David Postings, CEO of Bibby Financial Services said, “Having a robust credit control process in place, and being able to chase invoice payment is the key to effective cashflow management which is critical for any business.
“But many small businesses – particularly those with few or no employees – cannot effectively manage outstanding payments because they are focused on developing new business and fulfilling existing orders.”
Mr Postings commented on the amount of money owed to many UK smaller sized businesses, saying, “This represents a significant amount of money owed to UK SMEs and the value of these outstanding invoices could be reinvested into businesses in the form of recruitment or technology.
“Small and medium sized businesses are the backbone of the UK economy so this represents a significant threat to long-term economic growth.”
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