Tougher measures to crack down on late payment must be considered if Government plans to change the culture among larger businesses fail, FSB has warned.
A new range of proposals, including obliging board members of big businesses to report on how they are fostering relationships with suppliers, as well as a new Financial Reporting Council principle for greater engagement with suppliers and others, was announced in August.
Mike Cherry, FSB National Chairman, said: “The poor payments culture in the UK has grown into an epidemic, with research showing that a third of payments to small businesses are late.
“These practices are immoral, with the largest businesses squeezing small suppliers to improve their cash flow. Small businesses would like to see reforms requiring larger companies to appoint a non-executive Director to their board. If this package of measures, together with the Duty To Report and the appointment of a Small Business Commissioner, does not shift the dial on late payments, then this will need to be looked at.”
FSB members now have access to FSB Debt Recovery, allowing them to access 100 per cent of the amount owed and including the option to charge clients for late payment. Visit fsb.org.uk/benefits/finance/fsb-debt-recovery