SMEs owed £67bn in unpaid invoices

New research has found SMEs are owned £67.4bn in unpaid invoices, an 8% increase on last year and 36% more than in 2011.

Research by the Asset Based Finance Association (ABFA) also noted that while the recovery from the recession is taking hold, businesses were not accessing the finance which could allow them to invest and grow.

Jeff Longhurst, Chief Executive of ABFA, said the scale of unpaid invoices to SMEs had become enormous.

“Businesses need to recognise that their unpaid invoices are an asset. In many cases, they are the most valuable asset an SME has, and they can be the key to unlocking critical and affordable funding,” said Jeff.

“Invoice finance is playing a bigger role than ever in funding British and Irish businesses’ growth, and it is now an established part of the funding mix for a huge number of SMEs. But it can also help many more businesses.”

Members of ABFA currently provide £9bn in finance to SMEs against the value of their invoices, and at any one time will be providing £19.3bn overall in asset based finance to business.