New research from Lloyds Bank Commercial Banking has revealed that a third of UK businesses who were paid late in the last year did not chase outstanding payments.

Fear of damaging valuable customer relationships was the biggest rationale by some margin, cited by two thirds, 62 per cent, of businesses. This was followed by capacity and time constraints, 27 per cent.

The Lloyds Bank Business Barometer research showed that more than half, 52 per cent, have been paid late in the last year, 38 per cent have suffered overdue invoice payments on multiple occasions.

UK’s small businesses, those with a turnover of £1m-£25m, are owed an average of £79,500 in outstanding invoices with nine per cent owed more than £200,000.