Group unite to take on late payment
Dec 15 2011
War against late payment is set to be waged
A group of industry bodies have united in urging the government to tackle the growing problem of late payment to help small companies survive, grow and drive economic recovery.
The organisations, which include the Forum of Private Business (FPB), Lloyds TSB and credit referencing agency Graydon UK, have written to business minister Mark Prisk to call for a plan of action to address late payment, which is said to ‘decimate small firms' cash flow’.
The group has called for a range of measures including a confirmation that the EU Late Payment Directive making 30-day payment terms mandatory will be brought forward to 2012, and to ensure any new legislation prevents suppliers being coerced into agreeing to vary payment terms against their will.
Other suggestions include a clamping down on large companies taking ‘prompt payment discounts' and imposing retrospective changes to payment terms and conditions that are not contractually agreed.
A survey by Graydon UK shows that 76 per cent of business owners believe the government is not doing enough to protect UK businesses from late payment.
Further reseach from payments concern Bacs shows that small and medium-sized enterprises are now owed a total of £33.6 billion in outstanding invoice payments – a rise of 10 per cent in the last 12 months and the highest figure since records began in September 2007.
FPB chief executive Phil Orford says, 'There is mounting pressure on the government to crack down on the growing corporate late payment culture, which is already a huge problem for small businesses and is in danger of becoming endemic.
'Late payment and enforced retrospective changes to payment terms and conditions force firms out of business, plain and simple. It is time to tackle the problem once and for all so that prompt payment becomes the norm, unless there are good, justifiable reasons otherwise.’
There are currently no comments on this article
Comments