"The extended closure of so many businesses over the festive period worsens the problem and for some businesses puts them into real financial difficulty."
For one in 10 SMEs, the closures mean that they will struggle financially. Businesses in the North East are the worst affected with 27% being impacted financially, followed by the East Midlands (20%) and the North West (19%).
Nucleus is urging businesses to take action now and chase outstanding invoices to improve their cash flow and ensure they are paid on time this Christmas.
The research shows that around a fifth (21%) of businesses are already chasing their debtors in an attempt to overcome this seasonal financial challenge, but the remainder could be caught out by the payment delays over the festive break.
Chirag Shah, CEO of Nucleus Commercial Finance, commented: “We know that the issue of late payments is a challenge faced by too many SMEs every day. However, the extended closure of so many businesses over the festive period worsens the problem and for some businesses puts them into real financial difficulty whilst they wait for debtors to reopen and settle their bills.
"Businesses can take action now by speaking to their debtors and encouraging them to settle their bills before they close for Christmas. As a longer-term solution, we look forward to an update from Government on the Prompt Payment Code that is underway.”
