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New online service as late payments continue to put businesses at risk

Late payments are putting nearly a quarter of all SMEs in the UK at risk, a solicitor has warned.

Suzanne Dean, head of Debt Recovery at Napthens solicitors in Lancashire and Cumbria, has highlighted the statistics, from e-invoicing, financing, and analytics company Tungsten.

The figures show that the average SME is owed more than £40,000 in unpaid invoices, with half that amount thanks to overdue payments.

They have highlighted an issue facing many businesses and comes as Napthens’ Debt Recovery service announces an improved offering including a bespoke, online system.

Napthens Debt Recovery offers a no recovery-no fee service, allowing businesses to keep a close eye on costs without adding to the financial problems they face.

Suzanne Dean said: “Late payments are clearly an issue for UK businesses, particularly SMEs – these recent figures prove that many are facing large unpaid invoices.

“It is always important for a business to have good systems and procedures in place in relation to chasing late payments, but many businesses may not have the resources to devote to it while keeping the company running.

“The Napthens Debt Recovery service is changing the way it works with clients for precisely this reason. We are now offering a no recovery-no fee service which offers financial certainty at an often difficult time.

“This is an unusual service, as many in the debt recovery industry charge commission or fixed fees, which can often add to cashflow problems.

“The Debt Recovery service is also part of our experienced Commercial Litigation team, and also offers round-the-clock online access to files.

“We believe debt recovery and cashflow should be a high priority for our clients, and look forward to working with them, helping to play a part in keeping businesses running smoothly and efficiently.”

Debt recovery - head of Debt recovery - Suzanne Dean