SMEs waiting 4 months for payment

Small and medium-sized firms are waiting up to four months to be paid, according to research from the Federation of Small Businesses (FSB).

The FSB revealed that around 4,000 businesses were forced to cease trading last year because of late payment. Several of the worst offenders are larger businesses, with delivery firm TNT, food producer Bernard Matthews and catering company the Compass Group all telling small firms to wait 60 days for invoices to be paid.

"Poor payment practices in both the public and private sector can drastically affect cash-flow for small firms at a time when business owners are doing their best to hold on to precious funds," said John Wright, National Chairman of the FSB.

To read what Business Secretary Lord Mandelson told New Business about late payments click here