Small and medium-sized businesses have been left £5bn out of pocket due to trading partners or customers going bust, according to data released by CreditPal.

Over the last two years 43% of small firms in the UK have been left with an average of £7,500 owed to them.

"The amount left owing to SMEs as a result of company liquidations is shocking and threatens the survival of some UK businesses. It is imperative that companies take every step to mitigate their exposure to the risk of defaulted payments, especially as the economy climbs out of recession when the need for cash is even greater," said Chris Poll, CEO of CreditPal.

The total amount of company insolvencies was 19,077 in 2009, up from 15,535 in 2008.