Late payments are plaguing small businesses across the country, with large corporations simply refusing to pay their small suppliers on time. This infographic from Sage emphasises just how many small firms are suffering with late payments and highlights some of the most common excuses used by companies who haven’t paid up on time.
According to the infographic, small businesses are on average owed £12,000 in overdue payments, crippling thousands of SMEs nationwide.
The government is trying to clamp down on large businesses that fail to pay their small suppliers, with BIS intending to hire a new small business commissioner whose role will be to tackle late payments for goods and services.
In February, BIS also released a consultation paper on how they can provide business representative bodies with wider powers to challenge ‘grossly unfair’ contract terms and practices.
Not all large firms are guilty of withholding payments to their suppliers. In early October, Tesco CEO Dave Lewis announced that small and medium-sized businesses that supply Tesco supermarkets will receive their payments within 14 days. This shows that large businesses are taking notice of the problem, but certainly more needs to be done to help the UK’s SME community.