THE number of companies experiencing problems with cashflow is at its lowest for more than a decade, although late payers are still causing headaches, according to the latest Business in Britain report from Lloyds TSB Corporate.

Just 18 per cent of businesses across the central south reported cashflow difficulties, the lowest figure since the survey was first conducted in June 1992.

The highest-ever figure was recorded in December 1992, when 56 per cent of respondents reported facing problems as the recession bit hard.

Despite the current optimistic picture, businesses are still struggling with the problems caused by late-paying customers.

Nearly three-quarters of those battling cashflow troubles cited this as the major cause of their difficulties. Only 32 per cent highlighted falling demand or a lack of business.

Mark Handscomb, relationship director for Lloyds TSB Corporate in the south, which includes Salisbury, said effective cashflow management was crucial for the smooth running of any business.

"It's reassuring to see that our companies are winning the cashflow battle," he said.

"However, late payment by customers is becoming more of a menace for many businesses, so managers must do all they can to resist this very real threat to their long-term stability."