IMPROVEMENTS in orders and turnover experienced by small firms are being overshadowed by cash flow difficulties as a result of late payment, according to the latest survey from the Forum of Private Business.
In the monthly survey of members on the Forum’s Economy Watch panel, 43% of respondents said they had experienced an increase in orders, with 18% reporting a decrease and 39% no change.
In all, 35% said their turnover has increased from February, 24% that it has fallen and 40% that it stayed the same. Respondents’ total turnover is up by a reported £508,000 in March, compared to the previous month.
However, the total amount of capital tied up in late payment at any one time is £16,608,500, an increase of £1,014,780 from February. This equates to 35.5% of their combined turnover.