New service to help SMEs collect late payments

Small firms are being urged to use a new service aimed at tackling unfair payment practices amid warnings that the UK is gripped by a poor payments 'crisis'.
By The Newsroom
Published 20th Dec 2017, 06:00 BST
Position better but action still needed to secure payments to firmsPosition better but action still needed to secure payments to firms
Position better but action still needed to secure payments to firms

The Government launched the complaint handling service of the Small Business Commissioner, including a new website so small firms know their rights.

Small Business Minister Margot James said: “Over the last five years the amount owed to smaller businesses has more than halved from £30 billion to £14 billion.

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“Today’s Small Business Commissioner service will empower small businesses to take action if they are paid late, potentially delivering a £2.5 billion annual boost to the economy.”

Mike Cherry, chairman of the Federation of Small Businesses, said: “The UK is gripped by a poor payments crisis, over 30% of payments to small businesses are late and the average value of each payment is £6,142. This not only impacts on the small business and the owner, it is damaging the wider economy.

“The Small Business Commissioner is crucial to turning the tide on this late payments culture.”

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Small Business Commissioner Paul Uppal said: “Having run my own small business for over 20 years, I am well aware that integrity and trust are key to running and building a successful business.

“My mission is to help all small businesses nurture positive and lasting relationships with their customers that work in the best interests of both.”

Related topics:SMEsGovernment