A survey of 1,000 business leaders conducted by NerdWallet in April 2023 found that 55% small businesses are awaiting payments from up to six months ago.
- 55% of SMEs have outstanding invoices from the 2022/23 tax year.
- 46% said they had more outstanding invoices than the previous tax year.
- A third of unpaid invoices were less than a month overdue.
- 20% of overdue invoices were four to six months late.
Having a consistent flow of money is vital to the running of any business, and interruptions to this cash flow can prove to be a real problem for business owners and freelancers. From being able to ensure that salaries are paid on-time to covering bills and expenses, having overdue invoices can significantly impact the smooth running of small businesses.
In a new NerdWallet survey, 1,000 small and medium-sized enterprise (SME) owners, decision-makers, and freelancers in the UK were asked about their experience with late payments and how this has affected their business.
The survey found that over half (55%) of businesses still have outstanding invoices from the last tax year (2022/23). This is a problem that seems to be getting worse with time, as just under half (46%) of SMEs were left with more unpaid invoices at the end of the 2022/23 tax year than the previous year.