Northern-based businesses feel the pinch less than their peers, according to Bacs’ survey.

When questioned as part of Bacs' recent omnibus into the habits of British companies, almost half (45%) of SMEs in the North of Great Britain said they had experienced no visible indicators of the economic slow down that has been so widely reported. Of the British companies that claim to be feeling the effects of a pinch, 37% of SME owners claimed projects were taking longer to come to fruition and reported that they had cut spending on things like business travel.

Michael Chambers, Managing Director of Bacs, said: "With new stories breaking everyday about the state of the economy, we wanted to ask the people at the coal face to find out exactly what SMEs in Great Britain are currently experiencing. Unfortunately, the overall results do seem to mirror what's been reported more widely. However, it's good to see that companies in the North of England and Scotland report that they seem to be weathering the initial storm better."

"Smaller organisations will be aware of the implications of late payments and therefore need to do everything in their power to keep to agreed payment terms. Automated payment methods like Bacs Direct Credit can help with this and, from a credit perspective, Direct Debit can also help organisations ensure that payments are made on time, every time."