Figures released by Barclays show customer and supplier payment delays cost 拢1,200 per business

British SMEs are owed 拢2.5bn because customers and suppliers have failed to pay on time, new data has revealed.

Barclays Local Business annual Late Payments report has revealed on a typical day construction businesses across England and Wales are almost 拢3,000 out of pocket as a result of suppliers or customers failing to pay within the standard 30-day invoicing period.

This has resulted in these SMEs losing almost 拢1.1bn over the last 12 months as a result of non-payments, an average of around 拢1,200 per business.

John Davis, marketing director for Barclays Local Business said: 鈥淒espite some recent positive economic signs, it's concerning that late payments are on the rise. This is a serious issue for the construction firms we talked to - four in 10 [41%] say it threatens their day-to-day survival.鈥�

Firms typically have to wait almost a fortnight after the invoice due date before they get paid.

Barclays Late Payments report also found 65% of construction firms believe the problem will continue to get worse over the next 12 months.

Meanwhile 42% of construction businesses have borrowed money in a loan or overdraft to improve cash flow as a result of being paid late, and firms spend on average 1.4 hours a day chasing late payments.

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