Cabinet Office minister Francis Maude has revealed that the Government will begin to ‘name and shame’ those who are failing to pay SMEs promptly, publishing details of the offending contractors on the Cabinet Office website.
SMEs will be allowed to detail their slow payers to the Government anonymously, to ensure businesses do not feel inhibited coming forward to help shed light on unhelpful debtors.
With 74 days the average time taken by customers to pay for goods and services according to ABFA, it is no wonder that small businesses can become frustrated with inadequate cash flow.
It is hoped that growth by small businesses can really drive the UK’s recovery, but with margins tightened by higher supply costs and lower cash flow caused by slow payment, growth plans may be put on hold.
If you are an SME and are being suffocated by having to wait over 2 months for payments, we could be the helping hand you require to help grow and expand your business across the UK.