Late payments may be more of a problem in the current economic climate than profitability.
That is according to Business Link adviser John Grange, who noted that contractions in orders caused by the recession are putting many companies in difficult position.
Recently, a number of large companies signed up to a scheme entitled the Prompt Payment Code, aimed at helping smaller businesses further down the supply chain.
Mr Grange said: "In this transition phase you are very vulnerable to a period where your overheads are the same but the cash coming into your business has declined.
"If you add into those late payments you as a small business can become increasingly vulnerable."
According to the Barclays Late Payments report, nearly three million small and medium-sized enterprises (SMEs) in the UK have experienced problems with larger companies providing payment late.
As such, 36 per cent of SMEs have had to use their personal funds to tide over business costs.
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