'Bad payment practices lead to SME failures', report suggests

07 Dec 2018

A new report published by the Business, Energy and Industrial Strategy (BEIS) Committee has highlighted how 'bad payment practices' have led to the 'failure' of many small and medium-sized enterprises (SMEs).

The government's Prompt Payment Code, which was created to address poor payment practices, has 'too often' been 'ineffective', according to the Committee.

A 'statutory requirement' for companies to pay within 30 days should be introduced, the Committee stated. It also recommends giving the Small Business Commissioner the power to fine large businesses who pay their suppliers late.

Commenting on the report, Mike Cherry, National Chairman of the Federation of Small Businesses (FSB), said: 'Eliminating the scourge of late payments would see 50,000 businesses saved each year, [and] add £2.5 billion to GDP, which would be a real boost to UK productivity.

'The government must respond to this report with tough action on late payments, supporting smaller businesses to further develop their leadership and management capability, and to improve the adoption of basic digital technologies that small businesses need to grow and become more productive.'

Client Reviews

Wayne Plaister FCCA

Prime Accounts Limited

Reviews and Ratings for Accountant Wayne Plaister, Sheffield

Home | Accessibility | Disclaimer | Help | Site map |

© 2018 Prime Accounts Ltd. All rights reserved.


Prime Accounts Ltd. Company Reg. No. 05982652 Registered in England and Wales. VAT No. 930 5613 43. Memberships: ACCA, No: 1673164.
Prime Accounts Ltd., Unit 6C Napier Court, Gander Lane, Barlborough, Chesterfield, Derbyshire S43 4PZ

We use cookies on this website, you can find more information about cookies here.