Huge support from businesses to ban late payments.Lynne Manners
A report to be published this week by YouGov and the payments business Basware indicates that 61pc of British companies with less than 250 staff strongly support legislation that would force payment of bills within 45 days, only 11pc would oppose legislation.
The demise of Carillion this year, a renowned late payer, highlighted the ineffectiveness of government attempts to curb the problem. The outsourcer has been accused of waiting 120 days to pay some suppliers, despite having signed to the government’s Prompt Payment Code, which recommended settling invoices within 60 days.
The Federation of Small Businesses (FSB) estimates that 50,000 companies close each year as a result of late payments, costing the UK about 2.4bn in lost output. The FSB’s research last week revealed that public bodies are amongst the worst offenders, with 89% of suppliers to government having been paid late.
Official attempts to improve late payments have failed to have any major impact so far. The chairwoman of the Commons business, energy and industrial strategy committee, Rachael Reeves said: “There is a culture if fear among many suppliers that they will be dropped by big companies if they complain”.
If your business is experiencing late payments, please call us on 0161 832 5000 for a free confidential assessment on recovering your monies.