New research into the number of smaller businesses in the UK that are being impacted by delayed payments in the wake of Covid-19 has found that over half of them are in that position.

This was a joint piece of research by the Chartered Institute of Credit Management (CICM) and Pay.UK, the payments body. The aim was to establish just how widespread the late payment issue is among small firms following the pandemic and other factors like Brexit, and to establish just what effect it is having on their ability to keep trading.

The study found that 51% of small firms are dealing with delayed payments, and that this has left them with a total debt of £17.5 billion. Late payments can lead not only to debts, but also to cash flow problems for such firms, although accountants in Goole or other areas may be able to offer solutions.

The percentage of smaller firms experiencing delays in payments for services or goods that they have provided is actually slightly below that of two years ago, when it was 54%, but it is still very high.

Speaking to London Loves Business, Sue Chapple of the CICM stated that:

“Agreeing terms and conditions from the outset, and employing professional credit management best practice, can make all the difference in getting paid and keeping the cash flowing.”

Scotland is the part of the UK where the problem is currently worst, with 60% of small Scottish firms enduring late payments, while the private sector makes up 59% of overdue payments.