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The Impact of Late Payments on SME’s

The Impact of Late Payments on SME’s


Abdullah Abdelkafi


16 Apr 2019

Read time

4 Minutes



A few late payments here and there may not seem like a big deal. But, when you’re a small to medium business, these late payments can be critical. This is especially apparent with larger payments as this affects their cash flow at a greater rate.

Late payments can have a detrimental effect on businesses as well as the economy. A negative knock-on effect can occur as late payments to SME’s means they do not have the capital to pay their own creditors on time.

Healthy cash flow is an important factor for growth as well as debt management. Strong cash flow provides the foundations for a business to invest in growing the business further. Disturbances to cash flow can also effect forecasting and the potential of investors wanting to invest in your business.

Timely payments help maintain a healthy business, so how do you achieve it?

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