Small firms call for prompt payment

SMALL firms are stepping up their campaign to make larger companies pay their bills on time.

The Federation of Small Businesses (FSB) called for reforms to tackle poor payment practices.

Most small firms are paid late, including those in the public sector, research suggested.

FSB chairman Mike Cherry said: “For far too long some big businesses have been allowed to get away with poor behaviour that has seen them use their dominant position to bully and squeeze our small firms.

“This behaviour has forced many small businesses to take drastic steps, like turning to personal credit cards and overdrafts, just to survive the wait for a payment. Sadly, some don’t survive this wait.

“Poor payment practices are not limited to the private sector and they stunt job growth and damage economic growth. At the heart of this scandal however, lies a more important question about fairness and what is morally right.”

The FSB called on the Government to strengthen payment enforcement and for companies to assign a director to have responsibility to prevent late payment.