BLACKBURN, England, June 11, 2012 /PRNewswire/ --
The average amount of money owed to small and medium enterprises is £45,000 and the total outstanding debts for SMEs in the UK has reached a record high of £35.5 billion, according to new research.
Findings by Bacs Payment Schemes reveal that SMEs are facing higher debt levels from last year. The level has risen by £2billion from previous studies which indicated that the average amount owed stood at £39,000.
The number of small businesses experiencing late payment has fallen from 861,000 to 785,000 but the combined debt is now bigger than ever; and businesses are waiting longer for invoices to be resolved.
Results show that businesses have to wait on average 29.6 days longer than agreed payment terms; and big businesses are the "worst offenders" compared to individuals, private companies and government departments. Over 40% of those surveyed said that large corporations are the least likely to pay on time.
Mike Hutchinson from Bacs, said: "Our research highlights the challenges faced by many thousands of SMEs in chasing payments from customers and maintaining a healthy cash flow which is the life blood of any successful business.
"We would always recommend that anybody running a business ensures that as many regular payments as possible are automated in order to maintain financial control. This will reduce the stress and financial cost of chasing payments for business owners."
If you are in debt and you are struggling to keep your head above water because of how much people owe you, contact us Debt Free Me today for free help and debt advice.
They have a number of expert debt solutions available so whatever meets your individual needs, they can help. Whatever your specific circumstances, there will be a solution that's right for you. If you are not sure where you can turn to, don't bottle it up! Call 0800-988-7701 and arrange a confidential meeting with a trained debt advisor.
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