Many companies are facing cash flow problems as a result of them receiving late payments from other businesses.
This is the view of the British Chambers of Commerce (BCC), which described the problems as one of the factors that is prolonging the economic downturn.
Figures from the organisation show that late payments have been on the increase in recent months, which is playing "real pressure" on the finances of many firms.
According to Barclays Local Business, this is having a significant impact on the supply chain and logistics industry in particular, as many are receiving their money about two weeks late.
The BCC called on the government to do more to overcome this problem, although it noted that it has already introduced a prompt payment code.
"We would encourage all companies to sign up to that," a spokesperson commented.
"It is a voluntary code of conduct which puts the pressure on firms to pay up in good time."
However, the BCC added that whether this policy is working still remains to be seen.
Do you need to cut your costs? Start here - now!
