Small firms helped with outstanding payments

Small and medium-sized (SME) businesses now have the opportunity to outsource the problem of chasing outstanding debts to HSBC.

The bank plans to offer a range of guidance and services to help companies collect invoice payments via the Internet, telephone and its branch network.

Many small business owners worry about upsetting their major clients by chasing them or imposing interest charges, said Steve Bottomley, HSBC's head of raising finance.

"Just one late payment can have a domino effect on the rest of a business."

HSBC estimates that ten per cent of companies whose bills go unpaid are often unable to pay their workforce if a payment is a week late. Nearly 40 per cent of businesses struggling with late payments find it hard to pay their own bills on time.