Business Minister Anna Soubry expects the new Small Business Commissioner to personally pick up the phone to chief executives of big late-paying firms.
Soubry stated in an interview with Mail on Sunday, “We have a problem with big companies changing their terms and conditions to pay ever later. The Commissioner will, I hope, be doing a lot of work behind the scenes”.
A recent study by the Asset Based Finance Association claimed firms with fewer than 250 staff are owed £67.4 billion in unpaid invoices – up 8 percent from last year and an increase of 36 per cent since 2011, as payment times grow.
Business owners should not expect a complete reversal of larger firms’ attitudes regarding late payment of invoices; however, it is pleasing to see that the Business Minister has identified this area as a problem for owner-managed businesses and is trying to do something about it.