A loophole that enables large companies to avoid revealing how long it takes them to pay their suppliers has made the law not fit for purpose, according to the employers’ group, the Forum of Private Business (FPB). Large companies have a duty to report how long it takes to pay their suppliers at least twice
The government is planning to ease the cash flow burden on small firms by making the boards of large companies accountable for late payments to suppliers. It is part of an ongoing effort to tackle the issue of late payment, which can be the difference between success and failure for many SMEs. Large companies could
The government has written to 10,000 businesses to warn them they must pay their suppliers on time or risk being barred from winning public contracts. Officials from the Cabinet Office have written to the businesses – which include all the government’s current strategic suppliers – to remind them of the new rules on prompt payment,
The number of businesses in ‘significant’ financial distress jumped by 15,000 to a total of 481,000 in the final quarter of last year, according to the latest Red Flag Alert research from Begbies Traynor, the independent insolvency firm. The hardest hit sector was real estate and property, which not only saw a 7% (3,134) increase
A campaign for the government’s Prompt Payment Code to be compulsory rather than voluntary as it is now has been gaining cross party support from MPs. The idea was put forward by the Association of Accounting Technicians (AAT), which believes that the current voluntary system isn’t delivering for small businesses. The association has made three
Companies that fail to pay their suppliers on time could soon be prevented from winning government contracts. Ministers say the new Prompt Payment Initiative is designed to ease the pressure on small businesses. It’s due to come into force in the Autumn this year and will ensure the government only does business with companies who
The number of businesses becoming insolvent rose by nearly 20% in the year to September. The retail sector was among the worst affected with nearly 400 outlets, including high profile casualties like House of Fraser, having to cease trading over the summer. It’s thought high business rates, uncertainty over Brexit and tensions over international trade
The government is urging businesses to highlight their experiences of late payment and put forward ideas to ensure earlier settlement, especially by large companies. One in four UK businesses say that late payments are a threat to their survival. Research by the Federation of Small Businesses suggests that prompt payments could add £2.5 billion to
New regulations are being introduced to help small businesses recover unpaid invoices from large companies. The changes will make it easier for firms to access invoice finance. Ministers say this could provide a £1bn long-term boost to the economy Currently a small supplier’s contract with a larger company may prevent it from securing invoice finance
The number of corporate insolvencies fell by 12% in the second quarter of this year, according to the Insolvency Service. While the figures are to be welcomed as a much-needed improvement, the trade body R3 fears they may only be a temporary blip in a continuing upward trend. It’s urging business owners not to be