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New research has found that small business enterprises are chasing as much as £1.9bn in late payments thanks to the economic downturn – you need to get the right protection to be sure that any late payments do not put your self cert loan at risk.

New research by Bibby Financial Services shows that 35% of businesses are finding customers are taking longer to pay invoices than 12 months ago, which has meant that £1.9bn is still owed to UK business. Twenty per cent of companies say they are chasing invoices three times or more, and a staggering 48,000 businesses have had to follow up invoices more than 11 times.

Anyone small business owner with a self cert loan knows how important it is for their finances to run smoothly. Missed payments mean its the business owner who ultimately has to make up any loses, which could affect their ability to pay on their other financial responsibilities each month, like their self cert mortgage.

Edward Rimmer, chief executive of Bibby Financial Services says: "Across this nation, businesses are fighting for survival with sustaining a healthy cash flow one of the biggest challenges. We must do everything possible not to succumb to the easy route of late payment as it can become a vicious circle."

Those small businesses with the right income protection insurance need to worry about late payments. If they lead to financial difficulties for the owner then the important things like the mortgage are covered regardless. No one wants to deal with late payments, but with the right insurance they needn't be as serious as they might be.

SOURCE: Bibby, 31/03/10

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