Robust new proposals designed to smash the rise in Commercial late payments have received support from a leading authority within Westminster.
Minister for Small Business, Margot James has written to PPC (Prompt Payment Code) signatories promising support for a problem that is affecting UK Companies.
The letter states that paying invoices within 30 days should now become a standard practice and paying within 60 days will be a requirement bar mitigating circumstances.
The letter from the Minister also gave information that the will be an appointing of a small business commissioner. They will provide assistance in all areas of concern for small businesses such as obtaining and maintaining prompt payment of invoices.
As from April 6th, 2017 – the ‘Statutory Duty to report’ comes into effect which requires large companies to document their payment practices to their suppliers.
At the beginning of 2016, there was research conducted by Zurich revealing that 53% of small Businesses in the UK are owed an estimated £255bn due to late and/or non payment of invoices.
More recently, figures revealed that Sole Traders from across the UK have given up on a whopping £8.1bn owed to them.
An astonishing figure when you consider they have a professional recourse by way of a specialised Small Business Debt Collection service.
Margot James commented “Prompt payment can make all the difference to small businesses, boosting their cashflow and allowing them to invest in growth for the future. Although we have seen some progress, there are still too many business owners across the country who have not been paid by their customers”
She continued “We need a culture change to stamp this out and the Prompt Payment Code continues to play an important role in bringing this about”
The Small Business Minister also promised further measures to be implemented to along side the current plans for change.