Insider Media Limited

Fifty-two per cent of the Midlands’ small and medium sized businesses do not expect any help from the government in tackling the late payments issue. According to research from Bacs, the organisation behind Bacs Direct Credit, the total amount outstanding to companies in the region has decreased to £4.8bn.

Small and medium sized companies in the region were owed £6.2bn in December 2009 - this number fell to £4.8bn in June 2010.

Bacs’ research shows the average amount owed to small and medium sized businesses in the Midlands has fallen from £23,000 six months ago to £17,000 in June 2010.

Businesses in the North and South are owed an average of £57,000 and £35,000 respectively.

Mike Hutchinson, head of marketing at Bacs, said: “It’s encouraging to see the amount outstanding to Midlands businesses has significantly fallen over the last six months. By continuing to sharpen their billing and credit control procedures, Midlands companies can further lessen the impact of late payments.”

However, the Midlands is the only region which has seen a rise in the actual number of small and medium sized businesses experiencing late payments in the last six months, going up from 271,000 in December 2009 to 285,000 in June 2010.

Hutchinson said: “There is valuable help and advice through schemes like the 'Prompt Payment Code', and small and medium sized businesses will be well served to draw on all available resources to find new routes forward.”