| 88% of small businesses are not receiving payment from larger companies within contractually agreed periods, according to research by the Forum of Private Business (FPB).
72% of respondents feel that these delayed payments are having a 'serious' or 'very serious' impact on their business - hardly surprising considering the significance of cash flow on a small company, combined with the pressures of the credit crunch.
"Late payment is on the rise, according to our research, with more than half of respondents saying it has become more of a problem over the last 12 months," stated Nick Palin, Administration Director for the FPB.
"The Government should be doing more, both by paying on time itself and by implementing measures to tackle the problem without increasing the burden of legislation faced by small firms."
"The research shows that worrying trends are emerging. Supplier abuse appears to be widespread, and many smaller firms are in a catch-22 situation, fearing that, if they take action and use the legislation to charge interest, these larger companies will simply refuse to deal with them again."
The FPB is currently working with the government to help find a solution to late payment problems without creating more legislation for small companies.
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