Two-thirds of Midlands businesses not paid on time
Sixty-one per cent of Midlands businesses are not getting paid on time. That’s according to the results of a survey commissioned by online debt recovery service positivecollections.co.uk. Its chief executive described the situation as "cause for concern".
Thirty-two per cent of respondents said that payments were coming in later because they are more likely to accept excuses from late paying customers than before the recession hit.
The survey of 260 business professionals also found that 13 per cent of Midlands businesses would try to chase debts but avoid legal debt collection enforcement as it is expensive.
David Green, chief executive of positivecollections.co.uk, said: “The fact that so many businesses in the UK, especially in the Midlands, have become accepting of this ‘late payment culture’ is certainly a cause for concern as this has implications on the whole business community and economy.
“However, it is the small and medium sized businesses that take the strain and in the worst case scenario have to fold, although the survey does highlight that micro businesses are less likely to suffer.”
