Businesses are blocked from expanding beyond UK borders because of payment terms demanded by companies in other parts of the world, new research finds.

Bibby Financial Services surveyed 1,000 small businesses found a range of discordant payment practices, even within territories that are geographically close.

In Germany, for example, credit is generally restricted and nearly 80 per cent of firms expect clients to pay immediately for goods and services.

The same could be said of only a quarter of British firms, who routinely offer credit of between 30 and 60 days.

The disparity exists despite efforts in Europe to standardise payment terms with public authorities.

Stuart Dunbar, director of UK-based Oak Exports which exports non-perishable British foods, said: "We find that customers outside of the EU tend to pay more quickly than inside the EU.

“In the UK and parts of Europe, our experience is that businesses tend to have a more laissez faire attitude when it comes to payment terms.”