smallbusiness.co.uk: Helping your business think big

Cancel Christmas?

Some of you are probably wondering whether you should cancel...
Have your say »

RSS

FSB: Small businesses exploited

Jul 21 2008

Email a friend

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

Prize Draw

Free prize draw!

Smallbusiness.co.uk has teamed up with Avery® Quick&Clean™ Business Cards to offer five lucky readers the chance to win a copy of BBC Dragons' Den James Caan's new book The Real Deal and a pack of Avery® premium heavyweight business cards. To enter the prize draw, simply answer our question here

Polls

Latest News

UK needs to help start-ups

The country needs to work collectively to help people with good ideas to start up their own business.

Government launches £25 million business fund

The government has launched a £25 million fund to aid women in business, aimed at high-growth companies.

£1m for Scottish start-ups

A £1 million fund has been launched for Scottish entrepreneurs to help them set up firms with a social or environmental purpose.

Bosses should help fight staff obesity

Employers should help staff battle obesity with healthy eating options, as it will lead to a more productive workforce.

Small firms 'must be in pre-Budget report'

The pre-Budget report must give companies 'innovative and short-term' solutions for finance such as a £1 billion small business survival fund, an organisation has warned.

Bosses 'need to tackle stress'

Company bosses need to identify stress in staff early and ensure they are tackling it before it becomes a more serious problem, an expert advises.

Social networking marketing 'is a risk'

Using direct marketing through social networking sites is a risk as it cannot be controlled in the same way as other forms of marketing, according to an expert.

Work bullying 'could get worse'

Nine in ten people think they are a victim of workplace bullying, with one organisation warning this could get worse in the credit crunch.

Redundancies should be 'last resort'

Redundancies should be a last resort as they cost companies on average £10,000 each time and lead to a loss of credibility.

Entrepreneurs 'need to make risky decisions'

The success of a business is down to the risky decisions the owner makes, according to new research from the University of Cambridge.

'Spouse power' gives businesses £72bn boost

Partners of small to medium-sized business owners are contributing 230 million unpaid hours each year, helping these firms stay profitable, new research has found.

Guides & Tips

Redundancy is not the only option

Many SMEs will have to control staffing costs over the coming months. Smallbusiness.co.uk has teamed up with Simon Kite, a partner at chartered accountants Saffery Champness, to offer some tips on how to cut costs and avoid the redundancy route

What benefits do staff want?

 Oval Financial Services’ Debby Hannaford explores how focus groups and surveys can be used to gain constructive and positive feedback about employee benefits packages

Automated hacking

What do the Sony Playstation game ‘SingStar Pop’ and the Association of Tennis Professionals (ATP) have in common?

Don't Miss

Sweet success: Charlotte and Lynne Fudge

After finishing her degree Charlotte Fudge started mail order biscuits company Biccies with her mum last year. The company recently became profitable and has a turnover of £75,000.

Don't let age be a barrier

Margaret Wood started her engineering company ICW UK, which makes high-tech windows and windscreens, at the age of 46. Based in Yorkshire the 61-year-old entrepreneur received a Women Inventors in Industry award in 2003. Her company has a turnover of £400,000

Hosting in a recession

As the global economy staggers from crisis to crisis small businesses face the dilemma of having to control costs while also ensuring they remain competitive.

Store

FT Guide to Personal Tax

Formerly the Lloyds TSB Tax Guide, the FT Guide to Personal Tax is now published by Pearson Education. Written by Sara Williams, CEO of Vitesse Media Plc and Jonquil Lowe, this unique guide gives step-by-step advice to completing your tax return as well as 100 tax-saving tips.

FT Guide to Business Start Up

Formerly the Lloyds TSB Small Business Guide, the FT Guide to Business Start Up is now published by Pearson Education. 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.

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.