Big Rise in Businesses Taking Law suit on Late Payments

According to new information from Hitachi Capital Business Finance, 1 in 5 business people are even never pay themselves due to unpaid invoices are affecting their cash flow. The dpi doubles for smaller ventures with less than 10 employees .

At a time when Hitachi Capital Business Finance finds that three in five smaller businesses are affected by late payments , the new data highlights the very human impact on business owners – which issues have seen a marked increase since 2021. For instance, there's been a 22% rise in the number of small businesses wasting time and money on and law suit to chase a late payment , along with a 14% rise in SME's being unable to pay suppliers due to late customer payments .

The cashflow challenges that derive from chasing overtime has forced several in three small businesses to seek short term-borrowing to make ends meet.

Gavin Wraith-Carter, Md at Hitachi Capital Business Finance commented: “It is disheartening that a lot of small business owners feel impeded because their clients are not paying on time and, for many, the wreaks havoc using their cashflow. The very fact many small businesses are sacrificing their own salary does mean they're literally taking their business worries home with them.”