Comments - Government's consultation to protect small businesses with action on late payments

POSTED: 1st October 2020
IN: Newsroom

Tim Boag, managing director for business finance at Aldermore, said:

“Small and medium-sized enterprises in the UK face a myriad of pressures and are extremely vulnerable to late payments, especially with the impact of Covid-19. SMEs often face cashflow pressures as a direct result of a late payment culture and over the years they’ve been paying the price for poor payment practices.

“Aldermore has long campaigned for increased action on the late payment practices of government bodies and larger businesses, with some success in recent years. However, today’s consultation to give more powers to the Small Business Commissioner, is the biggest step forward yet.

“We continue to recommend the introduction of a robust reporting system with a significant financial penalty incurred by those who fall below minimum standards. This will make the level of late payments specifically to SMEs clearer and highlight those regular offenders. The money collected from late payments fines could then be invested back into SMEs through a development fund, potentially overseen by the British Business Bank. It’s essential that the Government continues to stamp out the UK’s bad late payment behaviour and support SMEs who are the backbone of the UK economy.”


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