Research from finance provider Sonovate shows the impact late payments have on small businesses, with a collective £6 billion owed to recruitment agencies.
With the government attempting to combat late payments, the latest research shows that recruitment agencies are waiting an additional week on client payments, compared to what they would before the recession in 2009.
According to figures from another research survey from the Asses Based Financing Associations, small businesses, who are more vulnerable to cash flow drying up, have to wait an additional 23 days compared to larger business, which pushes the average payment period for payments to 71 days.
Recruitment Agencies, especially those that place professional contractors on high rates, are feeling the effect of clients that delay or pay late, with the impact forcing some agencies into the red despite being profitable.
The research into late payments, specifically looking at the financing of Recruitment Agencies, shows that over £6 billion in late payments is still owed collectively.