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Late payment crucifying business sector

A report by Royal Bank of Scotland and NatWest has revealed that the late payment of invoices is crucifying medium to small sized businesses in the UK. It is believed that 71% of UK small and medium-size businesses have received late payments over the last year and the average payment timescale has extended to an average of 41 days over the agreed terms.

It is believed that 4,000 firms in the UK collapsed in 2008 purely because of late payments which is proving to be a greater and greater problem. The study also confirms that £62 billion remains unpaid after the agreed payment date and this figure contains £15 billion which is more than 120 days overdue. Despite the fact that the UK government has introduced various laws and regulations to assist businesses regarding late payments there is no doubt it is still causing major problems and becoming an area of great concern.

The very fact that we see thousands upon thousands of businesses collapse in the UK purely and simply because of cash flow issues is a concern which has been raised time and time again by the Federation of Small Businesses. But what else can be done to help cash flow for small to medium sized businesses?

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