The newly appointed small business commissioner (SBC) has been given formal permission to start handling complaints about late payments, as part of the government’s bid to achieve a culture change over payment issues facing small companies, with research showing a third of payments are late
New regulations mean the commissioner can now handle complaints from small businesses about unfair payment practices, while the commissioner’s website provides guidance to small businesses on payment issues including how to take action if a payment is overdue.
Margot James, small business minister, said: ’Over the last five years the amount owed to smaller businesses has more than halved from £30bn to £14bn. Today’s small business commissioner service will empower small businesses to take action if they are paid late, potentially delivering a £2.5bn annual boost to the economy.
Paul Uppal, small business commissioner, said: ‘Today I am launching a new website so small businesses know their rights, as well as how to contact me if they need further action to be taken when the larger businesses they supply owe them money.’
The SBC’s website guides small businesses on how to ‘check, chase, and choose’ how to deal with unfair and late payments.
This means checking if the right information has been provided to the right people in order for an invoice to be paid; chasing effectively when a payment is overdue; and choosing how to take further action, including the option of submitting a complaint.
Mike Cherry, national chairman of the Federation of Small Businesses (FSB), said: ‘The SBC is crucial to turning the tide on this late payments culture. FSB will be encouraging small businesses affected to use the service, and we hope then to see clear actions taken to tackle the worst examples of supply chain bullying.
The SBC was appointed in October and is based in Birmingham.
