Reports in The Telegraph this week said the Small Business Commissioner Paul Uppal wants stronger powers to combat the issue. At present, the commissioner, a new government position created last year, can only “name and shame” late payers.
According to reports, Uppal raised the issue that companies confronted by the official regarding late payment practices do not typically respond in a timely manner.
Despite calls for fines, Uppal also acknowledged that he does not currently have the power to introduce such capabilities to his position. A survey by Close Brothers Invoice Finance released in March found 42% of small businesses doubt the ability for Uppal to have a significant impact on the culture of late payments in the country.
The small business tsar’s call coincided with new research from small business accounting company Xero, published on Thursday (April 26), reports in Global Banking and Finance Review said. According to the company’s latest survey, more than half of invoices issued through the Xero platform from small businesses were paid late in 2017. During the past year, invoices with 30-day payment terms were, on average, paid after 40 days, though smaller companies tended to pay their invoices more quickly than larger corporates, researchers said.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now