Small business insurance holders are more likely than larger firms to effectively manage financial risk, it has been suggested.
Research from Close Invoice Finance discovered that there tends to be less ageing debt, or payments which are owed for more than 60 days, in smaller business insurance customers.
The organisation revealed that three-fifths of companies with between one and 50 workers have ageing debt levels of ten per cent on their books, while two-fifths of those with 100 to 249 employees also achieved this.
Furthermore, the group's study found that the majority of larger business insurance holders keep between 11 per cent and 50 per cent of ageing debt on their books.
David Thomson, chief executive of Close Invoice Finance, commented: "This study proves that smaller SMEs have been more successful than their larger cousins at successfully managing exposure to the risk of bad debt."
Recently, John Wright, national chairman of the Federation of Small Businesses, stressed the need for trade credit insurance, saying that it protects companies from other members of their supply chain which fail to settle their debts.
