August 02 2016
A recent business confidence tracker survey has found that 27% of Small and Medium sized Enterprises (SMEs) wrote off unpaid business debts in the last 12 months. If the figure from the survey was representative of the entire business population then this would equate to 1.4 million businesses writing off bad debts each year.
The average value of unpaid invoices written off was nearly £12,000. Transport and construction sectors were worst hit by bad debts, with 30% and 29% of businesses respectively having written off old unpaid debts.
Samantha White, CEO of My Credit Controllers said:
“Bad debts are a terrible challenge for smaller businesses. Unpaid invoices can lead to businesses struggling to meet their monthly commitments such as paying staff and their own suppliers. In this way the problem propagates down the supply chain. Businesses should take action promptly on unpaid invoices by seeking outside help from experts in debt recovery.”
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