Late payments continue to be a major challenge for small business owners and freelancers across the UK. In the 12 months leading up to June 2024, nearly half (49%) of all invoices were paid late, an increase from 43% the previous year and even worse than the 46% recorded in 2020.
The situation is particularly severe in certain parts of London, where a staggering 73% of invoices were paid late.
This ongoing problem has left many SMEs frustrated, and a quarter of businesses are now worried about their future due to these payment delays.
Despite the growing concern, 55% of SMEs feel that the Small Business Commissioner doesn’t have enough power to tackle the issue effectively. Interestingly, fewer than half (46%) of small businesses think the prompt payment code (PPC) should be mandatory for all companies. One in five believes it should only be compulsory for large companies.
These findings highlight the urgent need for stronger measures to address the late payment crisis that is impacting small businesses and freelancers across the UK.
If your small business is affected by late payments, we’re here to help!
At Modina, we proactively pursue payments, initiating pre-due date reminders and employing friendly yet authoritative communication from our experts, seamlessly representing your company.
Spend your time on the complex business of running your company, not doing frustrating chase-ups for late payers.
Keeping on top of credit control is crucial for businesses to maintain healthy cash flow and minimise the risk of bad debt. A well-established credit control process ensures a seamless experience.
Get in touch to learn more:
info@modina.co.uk | 020 7183 8241