According to the results of the survey made public by e-invoicing social business network operator Tradeshift, just under a third (30 percent) of polled small businesses have said cash flow issues caused by unpaid invoices could force them to lay off staff and 20 percent have said they would have to turn down business or take out a business loan.
In addition to these unpaid invoices and despite the majority of small businesses having payment terms of less than 60 days, the study found that 39 percent of all invoices issued are not paid on time. When asked about the reasons for non-payment of invoices, 34 percent of survey participants put slow payers at the top of the list, followed by companies going out of business (24 percent), disputes over work (19 percent), cash flow (11 percent) and administration (9 percent).
The research also found that only 28 percent of polled UK small business owners currently handle invoices online, and small businesses still receive over a third of all invoices by post.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now