MORE than a third of Yorkshire firms are falling victim to late payment, it has emerged.

A survey by Figures from Close Invoice Finance showed that 36.1% of more than 500 owner-managed businesses in the region considered late payment by customers to be a major issue for their organisation in 2010. That compares with just 17% polled a year ago.

And the poll by Close suggested that late payment was overshadowing an otherwise strong business performance.

The survey showed that 25% of small and medium-sized firms in the region typically have to wait for payment 31 days over agreed terms – considerably increasing business exposure to the risk of bad debt.

Big corporates were singled out as the worst culprits for paying up late by 39% of SMEs questioned.

Some 23% found “micro businesses” unreliable payers and 22% thought public sector organisations settled their accounts late.

Ian Steward, northern region managing director at Close Invoice Finance, said: “At a time when the economy seems to be improving, it’s sad that issues like late payment are still holding SMEs back from taking proper advantage of the potential upswing.

“Failure to settle up accounts on time can have a devastating effect on an otherwise viable business.

“So it’s vital to take get your risk management strategy in working order to avoid being left vulnerable to bad debt or cash flow issues in the longer term. For peace of mind, SMEs should consider investing in cash flow management tools which provide protection against the impact of these issues.”