tighter lending conditions

Late Paying Customers

Small firms under pressure from late-paying customers

Two–thirds of small businesses are owed more by their customers than they owe to suppliers, according to the University of Nottingham Institute for Enterprise and Innovation (UNIEI). Research from UNIEI revealed that non–paying customers and tighter lending conditions imposed by the banks have created serious cashflow problems for small firms – and the situation is getting worse. The survey also found 77% of small businesses believed that the balance between business credit and debt worsened between July and September last year. Association of Chartered Certified Accountants (ACCA) SME policy adviser Manos Schizas said: “Much of the trade credit issue has to do with a relatively small number of large customers who are late payers, and that is being exacerbated by th... »