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If you are suffering from tough financial times thanks to late payments hampering your business it might be worth checking your mortgage to see if you can do something to improve your cash flow.

New research from NatWest has found that 71% of small businesses in the UK have suffered from late payments over the last 12 months, with the collective value of invoices paid outside of the stipulated terms and conditions estimated at £62.8bn.

It is tough for many people who are trying to hold their businesses together – it is certainly not helped by people not coming through with their side of the arrangement. And it's happening up and down the country with one in five small businesses having suffered.

Despite these problems, the research reveals that less than half of small businesses have taken measures to improve their cash flow, according to the bank. This is worrying because all business that are having a tough time should be constantly assessing how they can shrink their outgoings.

Peter Ibbetson, chairman of small business at NatWest says: "Bad debts and late payment of invoices are endemic problems for UK businesses. For more than one in ten firms, over 60% of all their invoices are paid late, causing major cash flow problems for many. What's concerning is that so few are doing anything to help alleviate the problem."

The best thing any small business can do is to assess all their finances and see where savings can be made. It might be that a new cheaper small business commercial mortgage could take significant pressures off your enterprise – and all it would take to find out is to ask a professional mortgage adviser.

SOURCE: NatWest, 15/04/10

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