Small Businesses

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A new survey carried out by the Federation of Small Businesses (FSB) has found that over 400,000 UK small businesses may be forced to shut down in 2022 because of late invoice payments.

In total, around 440,000 small firms told the FSB survey that if they continue to experience delays in the payment of outstanding invoices this year, it could lead to their collapse. This survey saw the FSB speak to 1,271 owners of such businesses, and 30% of them stated that the final three months of 2021 had seen a rise in delayed invoice payments.

Another 8% said that this was seriously impacting on their ability to make a success of their companies, with just 6% indicating that they had arranged new terms of payment with suppliers and customers.

Late payments leave smaller firms facing cash flow shortages that can make them unable to continue day-to-day trading. Accountants in Goole and other areas that specialise in advising small businesses can sometimes help them find solutions to this problem.

Speaking to Largs and Millport Weekly News, Mike Cherry, the Chairman of the FSB, said:

“The small business community diminished in size over the past year and, unless action is taken now to tackle the challenges it faces, history is set to repeat itself.”

The sectors where worries are greatest are the food, accommodation and retail ones. Cherry urged the government to put small business support at the centre of its plans for levelling up the different parts of the UK.

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