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Tax & admin Jennifer Johnson · 13 November 2018
Waiting on an invoice payment? don’t expect it before Christmas
Today, 13 November, is statistically the last day that SMEs can be guaranteed to get paid in time for Christmas because of habitually late client payments. According to a study of 250, 000 subscribers to cloud-based accounting service Xero, the average payment time for UK small businesses on standard 30-day invoices is 40 days. With exactly 40 days until Christmas, many SME owners could be waiting until after the holiday to receive payment for work completed earlier in the year. In a new survey of 250 UK small business owners, online payments company GoCardless found that 56% have to use personal or emergency finance to pay for business expenses that arise due to late payments. Figures compiled in 2016 by the Federation of Small Business show that 61% of small businesses are paid late by big businesses. Another report found that only 4.7% of enterprises pay all of their invoices within 30 days. Read more about the late payments crisis:
ABOUT THE EXPERTJennifer Johnson
Jennifer is a reporter for Business Advice.