The Federation of Small Businesses (FSB) this week revealed that from its member survey of 8,000+ companies, 51% of SMEs providing goods or services to larger private sector businesses were paid late in the last 12 months.
The FSB's research shows that late payments to SMEs can result in reduced profitability (34%), paying their own suppliers late (32%) and restricting their business growth (29%).
In December 2008, the Prompt Payment Code (PPC) was set up to encourage a culture of large companies paying smaller suppliers on time and the FSB is now calling on the Government to strengthen the code once again.
Multiple online publications, including Real Business and growthbusiness.co.uk, have focused on the issues that SMEs are facing as a result of late payments by big businesses this week - you can read more here:
Don't let big businesses call the shots - growthbusiness.co.uk
Half of SMEs are paid late by large firms - Real Business
If you are experiencing cash flow problems as a result of late invoice payments, visit the Close Brothers Invoice Finance website, or give us a call on 0808 252 0353 to see how we could help.
