Where do late payers lurk?

We all know that small businesses are a vital part of the UK economy, operating in every city, town and village. London has the highest proportion of businesses in the UK, with 1,370 businesses per 10,000 resident adults. So, no surprises that the highest number of cases I get from businesses asking for support is from our capital.

However, that doesn’t paint the full picture.

Small businesses represent a higher proportion of the total business population in Wales, Scotland and Northern Ireland when compared to the UK average.

In both Wales and Scotland 99% of enterprises are SMEs (the figure is a close 89% in Northern Ireland), with 95% of enterprises in Wales being micro businesses (0-9 employees). In fact, the North of England has seen a higher increase in the number of small businesses setting up in recent years when compared with the rest of the UK.

But what about payment performance across the different parts of the UK? Data on this is not as recent what’s interesting is that historically, London has shown a lower rate of invoices not paid within agreed terms compared to other regions. In 2021, London had the lowest rate, at 25%, while the majority of other regions hovered around 29-31%.

We know a high proportion of small businesses creates an exciting entrepreneurial economy with huge potential for creativity and growth. Combine this with skills, adoption of new technologies and – essentially – good cash flow, and an area really thrives.

This is where me and my team come in. Last month, a small IT company came to OSBC with a familiar complaint. They’d been chasing payment for a client invoice for 12 months and were feeling powerless in the face of a huge accounting department with limited time and resources to dispute. We acted quickly – gathering all the necessary information and reaching out to the client to discuss the reasons for the delay and how to expedite the payment. Within three days, the client’s finance team confirmed the outstanding invoice had been processed, and we helped recover £2,500 for that small business.

So, if you are experiencing a late payment from a larger supplier or client, don’t hesitate to get in touch. Tackling late payments is one way we can continue to grow the small business sector in every corner of the UK, from Stornaway to Surrey.

This content is contributed by a guest author. Startups.co.uk / MVF does not endorse or take responsibility for any views, advice, analysis or claims made within this post.