Late payment issues could hamper investment and growth - survey

As a result, Lloyds warns that, while the overall level of business confidence in the region remains steady, some companies intending to invest in growth may find their plans hampered.

Among companies acknowledging cashflow problems, late payment is cited by more than three-quarters of them (78%) as being a major cause.

The report adds that a third of firms in the East (33%) expect the proportion of customers requiring deferred payment terms to increase in the next six months, up from 23% in the last survey six months ago, while only 11% expect the proportion to fall during H2 2015.

After late payment, other major causes of cashflow difficulties include fall in demand for products and services, cited by 39%, and default by customers (22%).

The survey for the latest edition canvassed the opinions of 1,500 UK companies, 65% of them being companies with turnover of below GBP 10 million, 10% with turnover between GBP 10 million and GBP 15 million and 25% with turnover of above GBP 15 million.