One in five firms says late payment problems have worsened, new research shows

Total Back Office Solutions can help you with your recruitment agency invoice financing.

The importance of companies considering outsourcing recruitment agency invoice financing has been highlighted by news that small businesses' payment problems are worsening.

According the Forum of Private Business' latest Economy Watch survey, nearly one in five firms says late payment problems, which cause serious cash flow problems, have worsened.

Late payment and changes to payment terms and conditions are proving to be a major challenge for many small companies as, on average, 36 per cent of respondents' turnover is tied up in late payment at any one time.

Further figures from Bacs show that more than £30 billion in outstanding payments is currently owed to small firms in the UK.

"Small businesses continue to suffer from the blight of late payment, which devastates cash flow and forces firms into administration," said Forum spokesman Phil McCabe.

"For the sake of small businesses and the economy the new government must prioritise tackling the culture of poor payment."

Outsourcing back office solutions can allow businesses to let agencies chase their invoices and help with timesheet management among other issues.