Late payment is the 'scourge' of small firms

Date: 7th February 2012

The UK's small businesses will be encouraged by the recent comments from one leading industry body, which highlight the impact of late payments.

According to the Forum of Private Business (FPB), the late payment trend across the country has decimated the cashflow of small businesses and threatened their very survival.

Phil Orford, the FPB's Chief Executive, said that in the very least, late payment is a huge obstacle to growth, holding small firms back from reaching their goals.

The comments come after the government announced a new drive to stamp out the practice, which sees small firms forced to wait for payment from their suppliers.

"Often the problem is that they are not aware of how to implement a few practical measures that can make a big difference," Mr Orford explained.

"That is why the government's current drive is so important and, by gauging our members' views about cashflow management procedures and barriers to implementing them, we hope to provide the key information necessary to push the prompt payment agenda forward even further."

Posted by Thomas Fletcher