78 per cent of transport small and medium companies are impacted by a culture of late payments, according to the Close Brothers Business Barometer quarterly survey.
The survey questioned more than 900 UK SME owners and senior management across a range of sectors.
“Late payments are a very real issue for SME business owners,” said Neil Davies, CEO, Close Brothers Asset Finance. “In some cases directors are having to defer their own salaries, increase their overdraft or pay their own suppliers late to ensure they remain liquid, causing the vicious circle to continue.
“This is clearly a national issue that spans both regions and industries. For example, 78 per cent of transport firms are affected by this issue, along with 74 per cent of manufacturing businesses and 73 per cent of printers.”
According to Close Brothers, the impacts of late payments range from damage to the supply chain and business reputation to impacting credit ratings and consequently the ability to access further funding.