Business group calls on large firms to ‘lead the way’ in tackling late payment
The Federation of Small Businesses (FSB) has urged large businesses to take immediate action to end the ‘culture of late payment, poor payment practice and supply chain bullying’.
FSB National Chairman, Mike Cherry, has written to all FTSE100 companies, calling on them to work with small businesses in order to create a new payment culture.
According to FSB research, 84% of small firms have reported being paid late, with 33% revealing that at least a quarter of all payments are received later than agreed.
Furthermore, over a third report that their agreed terms of payment have been extended over the course of the last two years, which has had a significant impact on cash flow.
The call follows the recent release of the parliamentary report on the collapse of Carillion, which revealed serious problems relating to the payment of suppliers.
Commenting on the issue, Mr Cherry said: ‘The poor payment practices that run rampant through UK supply chains is a national disgrace with the country falling behind almost all other industrialised nations in our ability to pay small businesses on time’.
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