As many small businesses know only too well, the problem of late payments is an ongoing one which can be disastrous for cashflow.
Michael Fallon, the Business and Enterprise Minister, has now said the government is “going to war” on late payments to small businesses. The Sunday Telegraph and The Daily Telegraph have also launched a major campaign on the issue of late payments
Mr Fallon revealed to the Sunday Telegraph that he has written to all FTSE 350 companies, urging them to sign up to the Prompt Payment Code.
He said, “And next month I am going to list those who haven’t signed. They have got another month to sign up.”
Late payment facts
- £36.5 billion is owed to small businesses, a record high
- The average small company is owed as much as £300,000
- Some contracts mean businesses have to wait up to 180 days to get paid
- Even then, smaller suppliers wait on average 41 days longer for payment than their contract stipulates
Have your say!
Michael Fallon has pledged to do more to tackle the issue of late payments. But will it work?
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Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.
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