Small businesses delay taking action against late payers for as long as four months from date of invoice, according to law firm Lovetts.

The news comes despite findings that actions like a Letter Before Action or Late Payment Demand prompts payment in 80 per cent of cases.

Charles Wilson, CEO of Lovetts, said: “Most businesses will start chasing within the first month after the payment is due, when this doesn’t elicit a response, they get tougher with phone calls, letters and emails. You can understand how the hours spent chasing can rack up.

“While we can understand the delicate nature of some customer/supplier relationships, patience is not a virtue when it comes to chasing payments and businesses need to show they mean business, much sooner.”