Small firms put at risk by late payers The Federation of Small Businesses (FSB) has warned that more than 400,000 small businesses could go under because customers are failing to pay their bills on time. Reflecting on the responses to a poll of 1,271 small enterprises, the FSB said late payments, inflationary pressures and Brexit-related red tape could reduce the number of UK SMEs. The poll found that 30% of firms had experienced a rise in delayed payment of invoices over the past three months. With 8% saying late payments are putting their firm at risk, this suggests 440,000 of the UK’s 5.5m small firms could be forced to close due to late payments this year. The survey also saw 78% of firms report an increase in overheads, while 74% of small exporting companies said international sales were flat or falling over the past three months and 38% reported a decline in exports. Considering the findings, FSB chair Mike Cherry warned: “The small business community diminished in size over the past year and unless action is taken now to tackle the challenges it faces, history is set to repeat itself.” Calling for greater support from ministers, Mr Cherry added: “Increasing the small businesses rates relief ceiling to £25,000 would take 200,000 more firms out of this regressive tax altogether.”