Companies owe '£128bn' on late invoices

23 August 2007
More news

24 August 2007 | Gareth Mytton

The average UK firm is waiting for £28,844 in late payment, new research has found.

The survey, by credit information company Creditsafe, suggests the value of work that has not been paid within the period set out in businesses' terms and conditions is £128 billion.

Companies in London were waiting for the highest value of unpaid invoices (£53,295). The lowest shortfall was for companies in the south-east of England and East Anglia, which were owed £10,755.

For SMEs, the average debt was £12,000. Larger companies were waiting for £229,335.

Late invoices dented the profitability of almost four in 10 companies - 30 per cent struggled to pay their own suppliers because they were waiting to be paid themselves.

One in 10 companies had struggled to settle tax bills because their invoices were not paid on time.

Businesses are missing out on interest of £1,341 a month on these unpaid invoices.



SMaug2007

LATEST
JOBS
Swindon, Wiltshire
upto £40K base (+ Paid overtime and corporate benefits)
Honda Manufacturing Ltd
Kew gardens, Richmond upon Thames, London (Greater)
£37,000 - £42,500 per annum pro rata, depending on skills and experience
Kew Royal Botanic Gardens
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE