SMALL businesses can and should do more to recover money which they are owed, a law firm has warned.

Debt recovery experts at Ward Hadaway say that taking steps to get back money should be part of every SME’s business plan – and can make the difference between surviving and going under.

The comments come after recent research found that small and medium-sized enterprises in the UK are owed a staggering £33.6bn in late payments.

The report from payment company Bacs revealed that the average small business is owed £39,000 and is waiting up to two months to get paid.

Over half of the nation’s SMEs are currently experiencing late payments, a situation which debt recovery experts at Ward Hadaway warn must change.

Julie Hind, head of debt recovery at the law firm, said: “With increasingly tighter margins and stricter bank lending, most small businesses literally cannot afford not to get paid.

“While giving customers time to pay is part of everyday business, long overdue payments should not be.

“Small businesses who are owed money should not be afraid of enforcing the payment terms agreed with their customers and clients – if they don’t then they could be putting their whole livelihoods on the line.”

Julie added: “Taking action to get back money which you are owed does not need to cost the earth so smaller companies are not necessarily at a disadvantage.

“Reminding customers of their obligations in a firm but polite way also ensures that everyone knows where they stand, something which is always important in any business relationship.”