73% of small businesses experienced late payments within the previous 12 months

About 40% claim that at least 30 % of their invoices are paid late

70% say the incidence of late payments has increased over the last 12 months

Two-thirds have written off invoices - 20% have written off £5,000 or more.

When large companies or public bodies make late payments the impact trickles down the supply chain to those small business that were not directly involved in the original contract.

Late payments curtail business growth, not just of the initial supplier affected, restricts productivity, and often leads to need for additional borrowing by small companies as they may have limited financial reserves

The Government estimated that in 2008 4,000 businesses failed as a direct result of late payment. This is expected to have increased in the current economic climate.

The Federation of Small Businesses is the UK's largest campaigning pressure group promoting and protecting the interests of the self-employed and owners of small firms. Formed in 1974, it now has 200,000 members across 33 regions and 194 branches.