Late payment is becoming a major issue for many British firms, the British Chambers of Commerce (BCC) warns, putting pressure on debt management plans.

Occurrences have been on the increase according to the body’s survey, putting real pressure on cash flow.

More needs to be done to tackle late payments, a BCC spokesperson states.

He highlights that the voluntary code of conduct put forward by business secretary Lord Mandelson would put pressure on firms to pay up in good time and could improve debt management.

During the recession, access to credit has been a factor holding back much growth, but now that is becoming more available, the recession will start to abate as cash flow improves, the spokesperson adds.

According to the Barclays Local Business annual Late Payments Report, small and medium-sized wholesale and retail businesses in the UK are owed £1.2 billion on any given day.

This means each company is around £2,418 out of pocket as a result of suppliers or customers failing to pay.