Almost a quarter of small and medium size (SMEs) business insolvencies are directly attributed to late payment issues. This statistic underlines the dire consequences of unpaid invoices, emphasising how delayed payments can lead to the downfall of otherwise viable enterprises.
Recent research reveals that, on average, UK SMEs experience a 24-day delay in payment of invoices. This delay not only disrupts cash flow but also restricts the ability to invest in growth opportunities. It is a fact that late payments are forcing over 600,000 businesses into ‘significant financial distress’ and over 50,000 into insolvency every year, a devastating impact on the entrepreneurial landscape.
Beyond financial implications, late payments corrode the morale of business owners and employees alike. A survey by the Chartered Institute of Credit Management shows that 59% of businesses report increased stress levels among their staff due to late payment concerns.
In this context, unpaid invoices represent more than just a financial setback; they signify a systemic problem that jeopardises otherwise stable and viable businesses, their employees, and the broader economy. Addressing this issue isn’t just about financial recovery; it’s about fostering a supportive business ecosystem where timely payments are the norm, ensuring stability, growth, and the overall well-being of businesses and their workforce.
