One of the biggest problems affecting businesses is finally being tackled by the government – late payments!
In December 2017 the government launched ‘The Small Business Commissioner’ to help small and medium sized businesses get late payments from larger companies that owe them.
If just one major client doesn’t pay an invoice on time: a smaller businesses cash flow can be massively impacted and problems can arise.
£3.1 Million Clawed Back Due To Late Payments
Research showed that it was obvious late payments owed to smaller businesses, from big companies, were the biggest problem facing owners, and so the Government launched The Small Business Commissioner.
Since it’s launch The Small Business Commissioner has clawed back £3.1 million in late payments within the last six months. This figure is up from £380,000 in the six months prior to that.
Since its inception the Small Business Commissioner had been receiving some criticism for slow progress in the first 6 months, however since then it’s clear that the processes are improving.
The massive step was taken because in extreme circumstances businesses were closing their doors due to these late payments.
Businesses Aren’t Speaking Up
The big challenge that the Small Business Commissioner faces is encouraging small businesses to come to them with their struggles.
It’s believed that many smaller businesses don’t speak up about late payments, due to fear of losing these big suppliers.
However, the SBC are hoping that their recent success will help these small businesses come out of the woodwork and get the help they might desperately need.
The large companies definitely have the money to pay these invoices on time, and the small companies desperately need these payments to improve their cash flow – so the solution seems a manageable and an achievable goal.
The Small Business Commissioner has now claimed it needs a bigger budget to help more businesses get the money that they are owed.
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