The study, which was conducted among 500 small business owners, found that the average amount written off was £11,708.
The total amount written off every day was found to be £134m.
Almost a fifth (18%) of SMEs lost contracts due to cash flow problems, a further 8% used invoice finance to solve this issue, while 19% plan to use it in the future.
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John Wilde, managing director of Amicus Commercial Finance, said: “Our research shows that not only is there a reliance by many UK SMEs on clients’ invoices being paid within the debtor day period, but that despite this, significant amounts of debt are being written off due to non-payment.
“Given this, it’s understandable that business owners are increasingly turning to invoice finance as a way of converting unpaid debts into instant working capital.
“We have taken a fresh, tech-driven approach that builds on some of the lessons learned in the fast-growing alternative finance sector.
“Here at Amicus Commercial Finance, we combine deep sector experience with a high-touch personal service and cutting-edge technology to make the process as straightforward and efficient as possible.”
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