ALMOST a third of small and medium enterprises in the region are suffering more now than 12 months ago when it comes to firms making late payments.

The problem of late payments is causing difficulties for almost two fifths of businesses in Yorkshire and Humber, leading to cash flow difficulties, and in some instances, is threatening a small firm’s ability to trade.

A quarterly survey canvassing SME owners and managers has found that it continues to be an issue for almost two fifths of SMEs in the region, with as many as 29 per cent claiming that it is worse now than a year ago.

A further 68 per cent of those negatively affected by late payments say the situation has not improved in the last year. Val Summerscales, secretary of the Bradford Chamber of Trade, said small businesses can be significantly affected by a delay in their bill for goods or services being paid.

“What is a small bill to a large company, can actually be a large amount to a very small firm.

“Quite Often an SME is pleased to be selling to the larger business sector, but would have to weigh up the length of time it could take them to get the bill paid.”

She added, however, that she was surprised the picture was worse now than a year ago for some firms, according to the survey, as things appeared to be moving forward.

Lee Hayes, regional sales director for Close Brothers Invoice Finance in Yorkshire and Humberside, who conducted the quarterly business barometer, said: “Our findings show that the burden of late payments continues to be a headache for almost two fifths of businesses in the region, resulting in cash flow difficulties for the majority (74 per cent) and for as many as 13 per cent of firms, it is threatening their ability to trade.”

Of those affected by late payments, over two thirds claim that they have had to write off up to 10 per cent of their turnover on average in the last 12 months whilst almost a quarter have had to write off between 10 per cent and 25 per cent of their turnover.

Mr Hayes added: “The amount of money that SMEs are forced to write off as a result of late payments is staggering and surely hindering business growth. We found that large corporate organisations were judged the worst offenders by 39 per cent of local SMEs, closely followed by the public sector for over a quarter of firms.”