Three in four SMEs forced to write off unpaid debt

Research by Opinium on behalf of Amicus Commercial Finance, shows that three in four small businesses have been forced to write off unpaid debts with the average write-off totalling £11,700 in the past year.

The research was drawn from responses from 504 UK-based small to medium-sized enterprises (SMEs).

The survey found medium-sized businesses with between 50 and 249 employees were the worst affected by delayed payments, with almost a quarter (24 per cent) of invoices remaining unpaid within agreed payment terms.

Medium-sized firms responding to the survey are reported to have lost on average £33,750 in the past year as a result of unpaid debts.

One-in-five (18 per cent) of the firms’ surveyed said they had lost contracts as a result of cashflow problems.

According to the research, the biggest challenges highlighted from cashflow shortages included paying suppliers (41 per cent), meeting debt repayments (30 per cent), buying inventory (29 per cent) and paying staff (24 per cent).

 

Read more about this research here.