Nearly 60% of small firms in the UK suffer late payment problems with an average of £2,000 being owed to them at any one time, according to research by Barclays Local Business.

The total amount owed to the UK’s small and medium sized companies was £8.3bn at the end of February, Barclays estimated.

The survey said 59% of SMEs said they had problems with late payment, with 33% reporting that the failure to pay on time risked the survival of the business.

John Davis, marketing director of Barclays Local Business, said: "A regular and reliable cashflow is essential to the smooth, day to day running of a business. The majority of SMEs cannot afford to wait on money they are owed without feeling the impact on the bottom line."