British SMEs, including Virtual Businesses in London, are owed £67.4bn in unpaid invoices, an annual increase of eight per cent...
... with SME firms in manufacturing and construction the worst hit by the growing problem for small to medium sized enterprises, already stretched by a stagnant European business climate and a strong sterling weakening exports.
It wasn't all doom and gloom however: SMEs can still use them to obtain cheap financing, the ABFA said, concluding that unpaid invoices don't necessarily dangerously hinder growth in and of themselves.
“The scale of unpaid invoices to Britain’s SMEs has become enormous, but there is no reason for it to become a barrier to investment and growth,” - ABFA chief executive Jeff Longhurst.
He then exhorted people to use unpaid invoices as an "asset", adding that
"in many cases [unpaid invoices] are the most valuable asset an SME has... unlocking critical and affordable funding".
Managers running small businesses in the UK should prioritise invoice recovery, or if that fails, debt leveraging to raise funding.