A new report has shown that SME’s across Scotland, including Perth and Kinross, Fife, Stirling and Clackmannanshire are struggling as a result of delayed payments.
The Bank of Scotland survey suggested that Scottish small to mid-sized enterprises are owed on average £79,070 in outstanding invoices.
Bank of Scotland said the average total of outstanding invoices owed to Scottish businesses has increased more than 59 per cent in two years, and 24 per cent of Scottish respondents are owed £200,000 or more, up from six per cent in 2014.
Of the 104 Scottish firms to respond, 32 per cent said they expect problems with late or slow payment will get worse with more customers expected to demand deferred payment terms.
Despite new laws being passed in 2013 to help penalise late-payments small businesses are less-likely to use them in fear of losing future business, Murdo wants the Scottish Government to do more to help the sector.
Commenting Murdo Fraser MSP said:
“SME’s are responsible for nearly a third of all private sector jobs and form an integral part of the rural economy, particularly in my electoral region of Perth and Kinross, Fife, Stirling and Clackmannanshire.
“Late payments are clearly causing cash-flow issues and I would encourage banks and lenders to be supportive of businesses in this situation.
“I would also call on public sector agencies who contract to SME’s in Perth and Kinross, Fife, Stirling and Clackmannanshire to pay their invoices in good time in order to support the sector.
“A Federation of Small Businesses has stated that SME confidence in Scotland lags behind the rest of the UK and is at a three-year low. Therefore it becomes even more important that SME’s are not overburdened with regulatory changes and I would call on lawmakers to do more to support Mid-Scotland and Fife small businesses during a changing economic climate.”