Recruitment business start-ups should ensure they have well-organised invoicing processes if they want to avoid late payments that can lead to cash flow problems.

Figures from NatWest recently revealed that late bill payments have caused UK businesses to have invoices worth £15.7 billion, with small and medium-sized enterprises worst affected by the situation.

Commenting on the report, Steve Hughes, an economist at the British Chambers of Commerce, said that many typical payment issues still persist despite an improvement of conditions since the recession.

He explained: "The credit crunch exacerbated and laid bare the problems that can be experienced up and down supply chains as a result of longer payment times.

To avoid any problems, "businesses need to make sure that they have a clear and efficient invoicing process, with clear and agreed terms of payment with those that they supply", he advised.

One way to deal with this problem is enlisting the services of specialist agencies that allow business to outsource back office requirements.