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Almost a quarter of Scottish businesses hit by more late payments as inflation rises - Perthshire Chamber of Commerce

Almost a quarter of Scottish businesses hit by more late payments as inflation rises

Almost a quarter (24%) of Scottish small or medium-sized enterprises (SMEs) have seen the number of late payments they receive increase since the cost of living has gone up, according to new research from Barclays.

The new findings indicate that rising prices have started to impact payments between businesses, as 19% of SMEs said that they’re finding it more difficult to pay suppliers themselves because of the cost of living crisis.

Late payments negatively impact a business’s income, which can result in cash flow instability, and are the single biggest cause of business failure. For some businesses, this owed money might prevent new hiring opportunities or investment back into the business, as 6% said that the amount they are owed in late payments could be used to recruit more staff and 8% said they could expand their products or service offering, growing their business.

For some businesses, the stress of waiting on late payments has more than just an impact on their finances as a third (33%) of respondents said they have felt anxious or their wellbeing has suffered as a result of late payments and 17% said that they have had sleepless nights.

However, over half (60%) say they would refuse a job with a potential customer if they were known for paying late.

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