According to specialist SME Lender Sonovate, nearly two-thirds of their small business clients say late payments from their customers are affecting their ability to pay contract workers on time. They claim that the proportion of SMEs that have problems paying their staff on time had risen to 50% last year. This is mainly caused by those late payments from their customers. Sonovate’s research also found that 38% of SMEs take more than 90 days to pay their contractors. This is up from 27% last year. Almost a third (31%) of SMEs have lost contract workers due to not being able to pay them promptly, while 51% said that they had missed out on talent because of payroll issues.
BFS Comment: Whilst Sonovate specialise mainly in providing invoice finance and associated facilities to recruitment agencies in particular, we know from our own client experiences that this is a major problem affecting many SMEs in the current economic climate.
If cash flow is proving to be a major obstacle for you, then call us at BFS on 0800 093 5240 for a Free consultation on the possible options available to you.
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