Late payment 'is getting worse'

Date: 29th June 2010

The problem of larger firms making late payments to small businesses is getting worse, according to new figures.

A recently-published report from the Forum of Private Businesses (FPB) has revealed that 18 per cent of companies feel the issue is getting worse.

According to the study, 36 per cent of small businesses' turnover is held up in late payments at any one time.

The survey comes just after Technology giant Dell wrote to its list of suppliers to inform them that due to the current economic climate it is extending its standard payment policy from 50 to 65 days.

This has led the FPB to add the firm to its late payment Hall of Shame alongside other large firms such as Carlsberg and Argos.

FPB spokesman Phil McCabe commented: "Small businesses continue to suffer from the blight of late payment, which devastates cashflow and forces firms into administration.

"Companies like Dell have a responsibility to pay promptly – failure to do so can mean the whole supply chain seizes up. In the meantime we will continue to give small firms a voice by holding them to account publicly in our late payment Hall of Shame."

Posted by Jacob Williams