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Late payment concerns for contractors revealed by research

A new study that sought input from more than three million small businesses in different parts of the UK has analysed this data to determine which regions have the worst problems with late payments.

The study examined results for 121 different regions and ranked them based on how long it takes contractors to receive payment for services provided. The purpose was to show which parts of the country are the least and most risky for SMEs and contractors in terms of late payments. Companies were rated between 1 and 5 for their willingness to pay invoices when due by invoicing platform Solna, which carried out the study.

These companies were then ranked by region, with urban areas such as West and East Central London, Birmingham and Greater Manchester among those with the highest late payment risks. Northern and rural areas of Scotland, including Lerwick, Aberdeen and Kirkwall, are the areas that present the lowest risk of this for contractors.

The co-founder and CEO of Solna, Inna Kaushan, told Bytestart:

“Businesses in a smaller community are more likely to pay their suppliers on time because it is often the case that they know them. In a smaller community getting a reputation for being unreliable could be really damaging to their business.”

With cities in the North among the higher risk places, contractor accountants in the Wirral and other nearby areas can provide invaluable help for SMEs with the financial issues created by late payments. These can include debt and cash flow problems.

Posted by Mark
April 8, 2019
Research & Statistics

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