AT A CASH LOSS

Small companies kissed goodbye to £5.8billion they were owed last year.

Research by Direct Line for Business suggests the average firm wrote off more than £31,000.

The number one cause was that a supplier or customer that owed money had gone bust.

Other reasons ranged from not having time to chase the cash to not wanting to damage a relationship.

Nick Breton, head of Direct Line for Business, said: “While maintaining a healthy relationship is essential, many small businesses cannot survive without a regular cash inflow.”