Disputes over late business payments are popularly depicted as a David and Goliath struggle between a small supplier and a stronger, infinitely wealthier procurer, whose parsimonious behaviour threatens the very existence of the former. But the consequences of unpaid invoices can be highly debilitating - even catastrophic - for companies of any size, particularly in sectors such as construction, where there is a heavy reliance on a healthy cash flow.
Surveys in the 1990s showed British businesses to be among the worst late payers in Europe. Although the main victims were seen to be SMEs, the negativity of late payment rippled out to dampen confidence in British business as a whole.
According to recent figures from the Federation of Small Businesses, UK plcs took an average of 46 days to pay their bills in the past three years. The statistics show also that 22 per cent of UK firms take more than 60 days to settle their accounts.
