FSB calls time on late payers
5th June 2018

Big business has been warned by the Federation of Small Businesses that they must do more to end late payments, poor payment practice and ‘supply chain bullying’ that the organisation says is damaging the UK economy.

The organisation is calling for companies to appoint a non-executive director on their boards to be given a specific responsibility for good supply chain practice including making sure the firm is opting to follow best practice and lead the way.

A letter from national chairman Mike Cherry to all FTSE 100 companies (full text here) urges chairs and CEOs to lead the way in stamping out poor payments for good by working with small businesses to help foster ‘a new payments culture in the UK.’

Research from the organisation shows 84% of small firms report being paid late, with a third saying at least one in four payments they’re owed arrives later than agreed. Even more (37%) say agreed payment terms have lengthened in the past two years, while only 4% say payment terms are improving.

The pressure from small business comes after the release of Parliamentary joint Select Committee report on the collapse of Carillion published last week. The report laid bare the substantial failures at the company including the squeezing of its suppliers, and the frailty of the Prompt Payment Code.