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Government joins small business groups to tackle late payment

The Government has joined forces with some of the UK’s leading small business groups in a bid to tackle the ongoing issue of late payment, which has a significant impact on small firms in the UK.

Members of the Small Business Economic Forum (SBEF) have signed an agreement to work together to develop measures to help ensure that payments are made on time.

Phil Orford, Chief Executive of the Forum of Private Business, said, ‘Late payment forces businesses to close, plain and simple. Ensuring small firms are paid on time and in full is key to their future growth and prosperity, and also to the UK’s economic prospects’.

‘We need more large companies at the top of the supply chain to commit to the principle of prompt payment, to understand that squeezing their suppliers out of business ultimately means less choice for customers, but small business owners also have a responsibility to address late payment by implementing cash flow management as a standard business process,’ he added.

The SBEF will work to encourage businesses to proactively agree payment terms before delivering orders, to raise and pursue complaints over late payment from Prompt Payment Code signatories, and to use electronic invoicing wherever possible.

A recent guide, Get Paid!, containing hints and tips for suppliers and customers is also available to small businesses, and can be viewed here: http://www.bis.gov.uk/assets/biscore/enterprise/docs/a/acca-get-paid-quick-guide.pdf

We can help you by ensuring that you have in place robust credit control and cash flow management procedures. Please contact us for further advice.