smallbusiness.co.uk: Helping your business think big

A promising venture

Previously, we’ve looked at the reasons why many describe the...
Have your say »

RSS

FSB: Small businesses exploited

Jul 21 2008

Many small businesses are being exploited by their larger counterparts during the economic crisis, the Federation of Small Businesses (FSB) remarks.

According to the federation, large companies are taking advantage of smaller firms by imposing new terms and fees on owners as well as delaying invoice payments.

For example, large organisations are sometimes forcing smaller firms to wait for more than 100 days before making their payments and modifying contracts with little notification.

The FSB also reports that while legislation is in place which would enable owners to charge interest on payments owed by bigger companies, they are fearful to use this, in case of losing their custom.

FSB national chairman John Wright says larger firms are 'abusing their power' in a 'shocking' manner.

'Making small businesses wait 105 days for payment and charging them for the privilege of doing so is nothing short of outrageous,' Wright comments.

Under the Late Payments of Commercial Debts Act, small businesses are able to charge interest at up to eight per cent on late payments.

Comments

There are currently no comments on this article

Barclays Business Start Up Account

Get everything you'd expect from a Barclays Business account…Free business banking for up to 2 years (Ts&Cs apply). Free day-to-day support from our Barclays Business Team by phone 24/7 and Mobile Banking, manage your account quickly and easily from a web-enabled phone. Apply online.

A business credit card with 0% interest on purchases for 3 months*

That’s on top of up to 56 days of interest-free credit**. When it comes to supporting your cashflow, it all adds up to a lot of extra breathing space. Also, by separating your business and personal spend it helps you keep track of your costs and identify areas where you can save money. Find out more today. *From date of account opening. **When you pay off your balance in full and on time each month.

If you’ve decided to go it alone, we can help you get started.

18 months free* day-to-day business banking
Free Sage Planning for Business software

We can also introduce you to a local business manager who can provide insight and guidance to help you get your business started and find the right finance options to suit your needs. Find out more.

Polls

Latest News

Venture funds to assist in credit easing support?

Fund managers should be given a role to play alongside the high street banks in delivering the government’s £40 billion credit easing scheme support, says venture capital firm EV.

RBS in bid to boost lending

The Royal Bank of Scotland has said it will aim to boost small business lending by at least 15 percent in three months as part of a drive to get behind the economic recovery.

FPB: Business Finance Taskforce not there yet

The Business Finance Taskforce has not yet achieved its aim of repairing the relationship between banks and small businesses, says the Forum of Private Business.

SMEs increasingly shun bank lending margins

Three quarters of small businesses think that bank lending margins on loans are too high, up from 73 per cent last year, research finds.

FSB welcomes banking reform

The Federation of Small Businesses has welcomed the recommendations set out by the Independent Commission on Banking on reform of the banking sector.

FSB: Government must not 'water down' banking reforms

The national chairman of the Federation of Small Businesses has written an open letter to the prime minister urging him not to ‘water down' proposals on banking reform.

Free loans offered to riot-hit businesses

A major bank is set to help out businesses hit by rioting by offering fee-free loans.

BoE: Project Merlin on track

More than £20 billion was lent to small businesses by the nation’s leading banks over the past quarter, figures from the Bank of England show.

Project Merlin banks 'on track' for lending targets

The five banks involved in the government-backed Project Merlin initiative say that they are ‘on track’ to meet business lending commitments.

FSB: More competition needed in banking

The banking sector needs more competition, rather than lending targets, to give small firms a better deal, says the Federation of Small Businesses.

FSB: Give SMEs a chance for finance

The Independent Commission on Banking must change the structure of banking in the UK to help small companies get finance, says the Federation of Small Businesses.

Guides & Tips

Banks in the main still seem reluctant to lend

Banking on assistance

Many businesses are still having no luck in obtaining bank loans.

The numbers have to add up if you're looking to borrow from a bank

What banks want to see from SMEs

So why aren’t banks lending to small businesses? Rose Lewis, a partner at financial consultancy Pembridge Partners, outlines what banks want to see from SMEs before agreeing to show the money.

Are banks backing your business?

SMEs tell us how the banking situation is affecting them

Don't Miss

Choosing the right financial investments

Get investing

When cash savings rates are low, some people start thinking about putting their money into investments and there are plenty to choose from.

Loans scheme for start-ups falls flat

Last month the government launched a finance package to help struggling small businesses access bank loans, but SMEs say they aren’t seeing the benefits.

Your first business loan

If your business plan and financial forecasts are sound, you may be feeling brave enough to approach a bank for funding.

Store

FT Guide to Personal Tax

The FT Guide to Personal Tax is published by Pearson Education. Written by Sara Williams, CEO of Vitesse Media Plc and John Bloxham, this unique guide gives step-by-step advice to completing your tax return as well as over 230 tax-saving tips.

Growth Company Investor

Growth Company Investor is widely recognised as the leading magazine for investors interested in AIM and smallcap companies. Published 10 times per year, and brought to you by an award-winning analyst team, it offers subscribers unrivalled insight into high-potential smaller companies. Subscribe today with a 50% discount in your first year.

FT Guide to Business Start Up

The FT Guide to Business Start Up 2012, published by Pearson Education, is written by Sara Williams, CEO of Vitesse Media Plc. This unique guide has sold over two million copies. It offers practical advice about starting and running your own business.