Research from the Federation of Small Businesses (FSB) has revealed that late customer payments are costing the UK economy £2.5billion a year, and are leading to 50,000 SME closures annually.

Aamar Aslam, CEO of alternative lending firm Funding Invoice has commented on the news, urging the government to appoint the long-awaited Small Business Commissioner, promised 18 months ago, in addition to offering advice to SMEs facing the burden of late payments on how to help their financial situation before it is too late. “The Federation of Small Businesses’ research revealing that the UK economy is losing out on £2.5 billion a year as a result of late customer payments is shocking. These small businesses have been waiting for over 18 months for a Small Business Commissioner to be appointed, to help ease the burden that late payments can – and evidently are – having on our country’s SMEs.

In the meantime, SMEs should consider their financial support options and look for third party support to help alleviate these cashflow problems before they become fatal to the business. Many small businesses are understandably cautious about upsetting new and existing clients by chasing late payments, but it is clear from these figures that the financial stability of a business must take priority, to prevent further insolvencies in the future.”