Member Article

Late payment drives SMEs to turn customers away

Over a fifth of SMEs have declined to do future business with customer who have paid late, according to research from Barclays.

A survey of 1,100 senior decision makers in SMEs has highlighted the problems businesses face by late payment.

85% of the respondents have experienced late payment, and nearly half of these business claim their worst repeat offenders are late three times a year or more.

Almost a third of businesses have threatened to take legal action, and the same proportion have requested payment up front.

Sue Hayes, Managing Director of Barclays Business banking, said: “Faced with a continually challenging business environment, small businesses clearly have no other option than to take action against customers who repeatedly pay late.

“Whilst it goes against all natural business instincts to turn customers away, it is entirely understandable when weighed up against the overall impact of the late payment on the future of the business.”

This was posted in Bdaily's Members' News section by Tom Keighley .