London's vibrant business landscape is under siege from a pervasive threat: late payments. The city's thriving start-ups and established corporations alike are struggling to recoup billions of pounds in unpaid invoices, crippling cash flow and jeopardizing futures. The numbers are stark. UK small and medium-sized enterprises (SMEs) are owed a staggering £23. 4 billion in overdue payments, according to government data.
In London, where operating costs are notoriously high, the impact is even more pronounced. Businesses are waiting an average of 72 days to receive payment for goods and services - more than double the standard 30-day payment terms. For London's SMEs, which comprise 99% of the city's business landscape, these delays can be devastating.
Late payments force companies to rely on costly overdrafts, delay investments in growth, and, in some cases, face closure. The Federation of Small Businesses estimates that late payments contribute to around 50,000 business failures annually across the UK, with a significant proportion of these occurring in the capital.
Marc Curtis-Smith, Managing Director of Federal Management, a leading London debt collection agency, astutely observes that "this isn't just a financial issue; it's a domino effect that impacts entire supply chains.
London, the beating heart of the UK's economy, is facing a growing threat that's putting thousands of businesses at risk: late payments.Other references and insights: See here
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