Late-paying clients are pushing SME cash flows to the limit, new research by Platform Black reveals.
When polled by the alternative finance provider, nearly two-thirds (65%) complained that clients are taking longer to pay their invoices than they did a year ago.
Meanwhile, a third (33%) said that at least half of their clients routinely pay their debts late.
But the greatest concern is the extent to which late-paying clients are stretching payment terms. More than three-quarters (78%) of late-payers were found to pay more than 10 days late – with three out of 10 (31%) paying more than a month late.
Respondents’ comments confirm the bleak picture painted by the data, with one SME owner writing: “Clients now see it as their right to pay late. This cripples cash flow and damages our confidence. We work in constant fear of taking a big hit.”
Platform Black CEO Christopher Shaw commented: “Even vibrant companies with a strong order book are being stretched to breaking point by a perfect storm of late-paying clients and banks that are reluctant to offer credit.”
Sally Percy is editor of The Treasurer
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