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Large businesses are "squeezing smaller firms both ends" when it comes to payment schedules, according to the Federation of Small Businesses (FSB).
SMEs often have to wait lengthy periods of time to receive payment from clients, the average of which has "flat-lined" at about 46 days over the past few years and shows no sign of improving.
Very often these clients are company directors of larger businesses who know that small firms are dependent on contracts with them, so they know they can take liberties and get away with it, the FSB said.
A survey by Asset Based Finance Association shows that the biggest problem SMEs face is late payments by their customers - 44 per cent of companies have been asked by their customers to extended credit.
According to paymentleague.com, the FTSE 250 company that is best-ranked for making swift payments is Electra Private Equity plc, which on average takes just one day.
The worst company is Aga Foodservice Group, which takes an average of 81 days to make payment.
Matthew Knowles, a spokesperson for the FSB, said: "We think that anything over 30 days is really unacceptable. There are companies out there, like Next for example, who pay their invoices the next working day.
"If Next can do it, then most of the other companies can do it as well."
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