According to a recent report, conducted by business insurance consultants ‘Your Business’, one of the biggest challenges the small businesses have faced during the recession, is late payment and bad debt.
The survey found that throughout the last two years almost fifty per cent of the SME sector have incurred some element of bad debt. While over forty per cent say that they are owed over eight thousand pounds or more as a consequence of business insolvencies.
Matthew Packham, managing director of ‘Your Business’ comments; “The findings of this repot, while concerning, are not surprising. Throughout the recession, bad debt and late payment have been a reality for most companies and, in some cases, have resulted in the demise of businesses.”
“It is vital that small businesses protect themselves from bad debt and develop a strategy of what to do if bad debt occurs.”
The report found that companies in the south of England were worst effected by late payment and bad debt.