21k owed on average to SMBs
9 in 10 SMBs with an overdue invoice
Data from Intuit Quickbooks reveals that small and medium-sized businesses (SMBs) in the UK with at least one overdue invoice are owed £21,373 in late payments in May 2021. This figure represents more than two thirds (67%) of the average SMBs typical monthly turnover.
Almost nine in 10 SMBs (87%) had an overdue invoice in May, and with Covid really magnifying cashflow problems, the average amount owed to SMBs has risen by more than £3,500 in the past three months (£17,777 – February 2021) and more than £4,500 annually (£16,840 – May 2020).
Late payment can push many SMBs into financial difficulty, and the data collected suggests that on average, SMBs experiencing late payments aren’t paid for more than a week (7.7 days) after their invoices are due. Typically, SMBs require instant payment (64%) although a third (31%) offer invoice terms between 1 and 15 days, and 5% offer invoice terms between 16 and 30 days.
Chris Evans, VP and UK country manager at Intuit QuickBooks, comments: “Late payments have long been a burden for the small business community, and Covid-19 has only heightened this problem. With other businesses increasingly withholding or freezing payments to protect their own finances, overdue payments can cause serious cash flow problems, particularly as small businesses typically don’t have large cash reserves to fund expenses or bills. Even a delay of just a few days could be the difference in their bank balance tipping into the red.
If your company is experiencing problems with late payment then contact Collection House, as we have the expertise to get your overdue invoices paid – as we have done for over 20 years. With our secure online portal, you can get updates on your delinquent accounts 24/7.
