Small businesses ‘at risk of insolvency’ over late bill payments by larger firms

HUNDREDS of small businesses are at risk of financial meltdown because of record waits to receive payments from larger firms.

Claiming that otherwise viable companies are being “strangled” by the financial delays, lobby group ISME warned that hundreds of firms are facing the prospect of going into liquidation due to the growing wait for payments.

According to the group’s latest credit watch survey results, based on the responses of 680 firms in the SME sector in the second week of April, small firms are waiting an average of 69 days to receive payment from larger organisations — more than double the legal time.