UK small businesses chasing an average of £4,619
An article published in last month’s Mail on Sunday uncovered the stark fact that the average debt being chased by UK small businesses is £4,619 and this figure is only set to rise.
Small businesses are increasingly resorting to the law to chase bad debt, according to new research.
The number of county court judgements brought by small and medium-sized enterprises increased by 23 per cent from the first half of 2015 to the second.
The study by Ormsby Street of data from its 27,000-strong customer base found the average value of CCJs pursued by SMEs was £4,619.
Its Managing Director, Martin Campbell, said: ‘Almost £5,000 is a significant amount for any small business to have to go to court to chase and it is hugely unfair that a small business should have to spend its precious time and resources on chasing payment for work that has already been delivered.’
He added: ‘Late invoice payment is fast becoming the scourge of small business in the UK, causing cash-flow issues that can impact growth and even the very existence of a business.’
The same article later reveals that almost half of UK SMEs (47%) wait more than thirty days for payment from customers, with the average waiting time of forty days.
Read the full article here.