{"id":7145,"date":"2026-08-05T09:02:12","date_gmt":"2026-08-05T08:02:12","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=7145"},"modified":"2026-08-05T08:02:14","modified_gmt":"2026-08-05T08:02:14","slug":"late-payments-are-crippling-smes-how-to-mitigate-the-impact","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/late-payments-are-crippling-smes-how-to-mitigate-the-impact\/","title":{"rendered":"Late payments are crippling SMEs: How to mitigate the impact"},"content":{"rendered":"

It has been estimated by the Small Business Commissioner that late payments are causing 14,000 businesses to close each year<\/a>. That is equivalent to 38 businesses a day!<\/p>\n

<\/p>\n

Many business owners are spending their time chasing payments rather than actually running their business.<\/p>\n

It is important to understand how to mitigate the effect of late payments as, in a time of economic uncertainty, late payments are creating further challenges for SMEs.<\/p>\n

What are the most common causes of late payments? <\/strong><\/h3>\n

Late payments are not always intentional. A common reason is that the payer is waiting to be paid by their own customers, leaving them without enough funds when the invoice is due.<\/p>\n

Payment dates may also fall before the business receives income, creating short-term cash flow pressure even for profitable firms.<\/p>\n

Administrative issues, such as missing invoice details, approval delays or human error, can also push payments past the deadline.<\/p>\n

When cash flow is tight, businesses may prioritise essential costs such as wages, rent or supplier payments.<\/p>\n

How do late payments harm businesses?<\/strong><\/h3>\n

Late payments can affect businesses of any size, but SMEs are often hit hardest.<\/p>\n

Some may need overdrafts or loans to bridge the gap, adding interest costs and reducing profitability.<\/p>\n

Late payments also take time to chase, diverting owners and finance teams from customers and growth. Repeated delays can restrict investment, strain supplier relationships and make future planning harder.<\/p>\n

In severe cases, they can threaten long-term stability and increase the risk of insolvency.<\/p>\n

How can an accountant help?<\/strong><\/h3>\n

Chasing late payments from a long-term supplier can be quite an awkward position for business owners to be in.<\/p>\n

However, accountants are here to help with that.<\/p>\n

An accountant can help establish clear payment terms from the outset, ensuring that clients understand exactly when payments are due and what the consequences are for late settlement.<\/p>\n

They can also implement accounting software to monitor invoices, track outstanding balances and automate reminders, helping to reduce the risk of payments slipping through the cracks.<\/p>\n

Additionally, accountants can make sure invoices are accurate and professionally presented, leaving clients with little reason to question or delay payment.<\/p>\n

If these preventative measures are unsuccessful, accountants contact debtors directly by phone or email, send formal payment reminders and issue final notices where necessary.<\/p>\n

They can also apply late payment interest and fees in line with agreed terms, encouraging customers to settle their debts promptly.<\/p>\n

For businesses that regularly experience late payments, accountants can offer further support through detailed cash flow forecasting and financial planning.<\/p>\n

This helps ensure that your business remains financially stable and able to meet its own obligations, even when customer payments are delayed.<\/p>\n

By identifying potential cash flow gaps early, accountants can help put strategies in place to minimise disruption and maintain healthy day-to-day operations.<\/p>\n

Luckily, you’re in the right place. Our talented team of accountants can help you with all of these to ensure that your business can thrive despite late payments.<\/p>\n

For late payment support, get in touch with our team today!<\/p>\n","protected":false},"excerpt":{"rendered":"

It has been estimated by the Small Business Commissioner that late payments are causing 14,000 businesses to close each year. That is equivalent to 38 businesses a day!<\/p>\n","protected":false},"author":2,"featured_media":7148,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45,24,125,4],"tags":[],"_links":{"self":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7145"}],"collection":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=7145"}],"version-history":[{"count":1,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7145\/revisions"}],"predecessor-version":[{"id":7146,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/posts\/7145\/revisions\/7146"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media\/7148"}],"wp:attachment":[{"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=7145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=7145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bainesjewitt.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=7145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}