Statistics released by the Federation of Small Businesses (FSB) found that approximately £30,000 is owed to a small business at any one time.
The organisation hit out at large businesses dictating their own payment terms and using businesses as an external form of credit, and called for Companies House to be turned into a "fully functioning enforcement agency" naming and fining companies reneging on the payment terms.
The statistic comes as increasing numbers of printers are reporting that large clients are considering altering payment terms to shore up cash flows in the run-up to Christmas. This is having a knock-on effect throughout the industry as others follow suit.
One printer said: "We are having to increase our payment days as our large clients are doing the same. We are up-front with our suppliers and I think they understand that we have little option."
Have you been affected by changing payment terms? E-mail william.mitting@haymarket.com or leave your comments below.
Companies House needs to get tough over 18.6bn owed to businesses - FSB
Small businesses are owed around 18.6bn in outstanding payments and Companies House should do more to protect debtors, an industry body has said.
