Businesses awaiting a £150k average payment for pre-lockdown work
Ninety per cent of businesses are awaiting to be paid an average of £148,917 for pre-lockdown work, MarketFinance has revealed. A survey from the fintech business lender found that 81% are also expecting to wait longer to be paid for the goods they provide and work they do from now on. Half anticipate waiting anywhere between 14 to 30 days beyond normal terms (45 days), whilst 15% reported they could be waiting anywhere between three to six months longer to be paid for work. “The reopening of the UK’s high streets marked the first buoyant moment for UK businesses in months but it might well be the calm before the storm,” said Anil Stocker, chief executive at MarketFinance. “First up, its alarming that only half of their CBILS loans are being granted, then we learn that they have close to £150,000 in outstanding payments since the lockdown began and now, it’s likely that they will have to wait twice as long to get paid for new work they do whilst demand and economic activity normalises. This, coupled with a very moderate outlook for trading conditions, ‘rent quarter day’ this week and uncertainty about their workforce, no doubt this will put further pressure on businesses”.