Wednesday 26th Oct 2016 - Logistics Manager

Small distribution companies hardest hit by late payments

Small and medium-sized businesses in the distribution sector are being forced to wait 50 days beyond agreed terms before they are paid – ten days more than the national average, according to research by Bacs, the organisation behind Direct Debit.

The research also found that distribution firms are owed £7.9 billion in total, with individual companies owed £39,000 on average, more than any other industry sector.

It reckons that 53 per cent of distribution SMEs have experienced late payments and nearly a third now employ a dedicated member of staff to chase payments.