Crackdown on late payments in major support packages for small businesses!

Announced by the Government, the initiative is aimed at large businesses, defined as:

·         Having a £36 million turnover

·         £18 million on its balance sheet

·         Having more than 250 employees.

The press release does not mention the public sector bodies, whose bureaucracy often leads to late payments. Many smaller businesses finance their operations by taking extended credit.

J Malcolm Dean, Chairman of The International Alliance of Entrepreneurs, comments:

“The public sector should be instructed to pay all suppliers within 30 days and receive penalties if they do not comply. Any legislation should deter large businesses from delaying payments. Additionally, the government should implement improved initiatives for banks and finance houses to provide working capital for the SME sector. All businesses should have an effective credit control procedure in place.”

CLICK HERE TO REGISTER FOR OUR FACT SHEET on “How to Improve Your Credit Control Procedures”.

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