Almost a quarter of smaller Scottish firms have seen a jump in the number of late payments they receive – a problem that is the top cause of firms folding – since the cost of living increased, according to new research out today.

Barclays said its new findings indicate that rising prices have started to affect payments between businesses, as 19 per cent of small or medium-sized enterprises (SMEs) said they’re finding it more difficult to pay suppliers themselves as outgoings increase.

The report also found that 6 per cent said the amount they are owed in late payments could be used to recruit more and 8 per cent said they could expand their products or service offering.

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Scots SMEs report 'distressing' rise in late payments amid higher costs