According to a new report by Bibby Financial Services (BFS), the value of bad debt suffered by small businesses has surged by “a staggering” 127%. BFS’s SME Confidence Tracker found that businesses have written-off an average of nearly £40,000 in unpaid invoices in the last 12 months, up from an average of £17,500 in the Spring. The proportion suffering from non-payment has risen too, reaching 40%, up from 30% in March. Jonathan Andrew, Chief Executive Officer of Bibby Financial Services, said: “This is a supply chain disaster waiting to happen for SMEs, as well as a huge economic leakage. While late payment is a known challenge, bad debt, where unpaid invoices are written-off entirely, is a hidden assassin that can wreak havoc through SME supply chains.” To read BFS’ Tracker, go to https://www.bibbyfinancialservices.com/knowledge-hub/news/2024/confidence-returns-little-by-little.