Complete Clarity Solicitors


British Businesses Suffer Due to Unpaid Invoices

New research has revealed that British SMEs are owed more than £500 billion in outstanding invoices, an increase of more than 70% in two years.

The latest Lloyds Bank Commercial Banking Business in Britain research also found that the problem is likely to get worse during 2016, with almost 30% of small businesses expecting more of their customers to demand deferred payment terms in the next six months.

UK SMEs also own almost £2.5 trillion of assets that could be used to fund further growth, again a huge 220% increase on 2014, when Lloyds Bank found that small and medium-sized businesses owned a total of £770 billion in assets.

Together, the figures suggest that a lack of understanding of alternative funding options is holding British businesses back, says Lloyds.

Businesses in Sussex, Surrey, Hampshire and Dorset were apparently owed the most in outstanding invoices (£109,000 on average), while those in Scotland were owed the least (£79,000). Those in London and Essex owned the most valuable assets (£670,000) but owned the lowest proportion of those assets outright (72%).

The research also found:

  • Around 17% of SMEs admit to having cashflow problems (2014: 19%)
  • Almost a third (31%) said that late payment was the biggest cause of cashflow difficulties. A further 11% blamed defaults by customers.
  • The average SME is now owed £100,000 in outstanding invoices (2014: £60,000)
  • One in four businesses (25%) are owed £200,000 (2014: 10%)
  • The average SME has more than £600,000 in physical assets (2014: £240,000)
  • It also owns more than three quarters (77%) of those assets outright (2014: 65%)

Contact our Solicitors in Glasgow

To find out how our solicitors based in Glasgow, Scotland, can help resolve your debt recovery problems then click here to fill out our online enquiry form or call us today on 0808 115 5638. We look forward to hearing from you.