Late payments and unpaid invoices see 200,000 businesses struggling

Alan in Late payments, Unpaid invoices | No Comments

Figures published this month show a sharp rise to nearly 200,000 businesses struggling in the second quarter of this year much of it caused by the increase credit taken by late payers. Unpaid invoices continue to be of particular concern.

The increase of businesses showing signs of significant financial problems compared with last year is endemic throughout the country. Late payment and unpaid invoices are blamed by many companies with customers continuing to stretch payment.

There is a very diverse picture amongst sectors on a quarter on quarter basis:

Recruitment, engineering and manufacturing amongst others have shown substantial increases in problem companies and unpaid invoices.

Construction and professional services have in contrast shown reductions in problem customers quarter on quarter but unpaid invoices are of continuing concern.

We can see no evidence yet of a true recovery unpaid invoices and indications show that the recession is likely to be more prolonged than suggested by the government.

Analysis of payment trends with late payment as an indicator suggest continued increase in business insolvencies continuing for at least the next two years.