Calls for small firms to be paid on time for work

THE Federation of Small Businesses has called on the government to ensure companies are not paid late.

Ahead of the spring statement next month, FSB’s ‘fair pay, fair play’ campaign has urged the government to gain the help of non-executive directors, improve payment enforcement and adopt project bank accounts to combat the poor payment crisis in the UK.

FSB research shows the vast majority (84 per cent) of small firms report being paid late, with a third (33 per cent) saying at least one in four payments they’re owed arrives later than agreed. Nine out of 10 public sector suppliers say they have been paid late.

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FSB development manager for Hampshire, Dorset and Isle of Wight Nicola Bailey, said: ‘For far too long some big businesses have been allowed to get away with poor behaviour that has seen them use their dominant position to bully and squeeze our small firms.

‘This behaviour has forced many small businesses to take drastic steps like turning to personal credit cards and overdrafts, just to survive the wait for a payment. Sadly, some don’t survive this wait.’