Wednesday, October 21, 2020

Late payments put a quarter of East Midlands SMEs at risk of insolvency

More than one in four small and medium sized businesses in the East Midlands are facing a potential financial crisis due to late payment of invoices, according to new research.

The average SME in the East Midlands is owed £39,652 in unpaid invoices, a survey by Tungsten Corporation revealed, with the total owed to the businesses surveyed in the region being over £1.3m.

When applied across the UK’s 5.2m SMEs, the figure could be as much as £212bn.

Rick Hurwitz, CEO at Tungsten, said: “These figures are a telling reminder of the challenges faced by SMEs in the East Midlands. An unpaid invoice can mean the difference between a successful month of trading and a dangerous financial shortfall. In the worst case it could lead to insolvency.”

Some 27 per cent of East Midlands SMEs responded that they felt at risk of closure due to the late payment of invoices, which is higher than the national figure of 23 per cent.The survey suggests that the issue spans customer sizes and types, with 18 per cent of East Midlands SMEs reporting that most of their late payments were from medium-sized businesses, 17 per cent pointing to large firms and seven per cent identifying small businesses responsible for late payments.

Some 39 per cent of businesses said that there was no clear pattern.Hurwitz continued: “The creation of the new role of Small Business Commissioner shows that the government is taking the problem seriously, but it’s clear that there’s work still to be done to ensure that SMEs are paid in a timely fashion.”

A message from the Editor:

Thank you for reading this story on our news site - please take a moment to read this important message:

As you know, our aim is to bring you, the reader, an editorially led news site and magazine but journalism costs money and we rely on advertising, print and digital revenues to help to support them.

With the Covid-19 pandemic having a major impact on our industry as a whole, the advertising revenues we normally receive, which helps us cover the cost of our journalists and this website, have been drastically affected.

As such we need your help. If you can support our news sites/magazines with either a small donation of even £1, or a subscription to our magazine, which costs just £33.60 per year, (inc p&P and mailed direct to your door) your generosity will help us weather the storm and continue in our quest to deliver quality journalism.

As a subscriber, you will have unlimited access to our web site and magazine. You'll also be offered VIP invitations to our events, preferential rates to all our awards and get access to exclusive newsletters and content.

Just click here to subscribe and in the meantime may I wish you the very best.






Latest news

Leicester photographic print supplier secures COVID support

Leicestershire photographic print supply firm, Tetenal UK, has secured a finance facility from HSBC UK through the Coronavirus Business Interruption Loan Scheme (CBILS) to...

Expert NEDs join F Word Academy

The F Word Academy, an online business finance academy, has added two East Midlands business development experts to its executive team. Stuart Ross from High Growth...

Software company acquires online school management system

IRIS Software Group, the privately held software company, has acquired iSAMS, a fully integrated online school management system. Set to grow the scope of the...

Software firm reports 47% revenue growth and secures investment for future expansion

The Access Group, a provider of business management software to mid-market organisations which is due to open a new office at Loughborough University Science...

Watch the 2020 East Midlands Bricks Awards as it unfolds next week

On Thursday 29th October, the 2020 East Midlands Bricks Awards will take place virtually. Business Link’s annual event, the East Midlands Bricks Awards recognises development projects and people in commercial and public...

Related news

Agent appointed to Chesterfield Waterside offices

Knight Frank has been appointed to find tenants for office space in Chesterfield’s newest £340m regeneration project. Construction of No.1 Waterside Place at Basin Square...

Leicester photographic print supplier secures COVID support

Leicestershire photographic print supply firm, Tetenal UK, has secured a finance facility from HSBC UK through the Coronavirus Business Interruption Loan Scheme (CBILS) to...

Expert NEDs join F Word Academy

The F Word Academy, an online business finance academy, has added two East Midlands business development experts to its executive team. Stuart Ross from High Growth...

Software company acquires online school management system

IRIS Software Group, the privately held software company, has acquired iSAMS, a fully integrated online school management system. Set to grow the scope of the...

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close