A poll has revealed that small businesses are frequently being paid late by larger organisations.

51 per cent of respondents to a poll carried out by the Federation of Small Businesses (FSB), who provided services to large businesses, said that they were paid late.

Research from the FSB found that late payments reduced profitability for 34 per cent of respondents and restricted business growth for 29 per cent.

John Allan, national chairman of the FSB, said: “Small businesses simply can't be expected to lend interest free to their large customers, which is in effect what extended payment terms and late payments results in. This is as much a policy issue as it is a cultural problem within UK business.”

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