The Department of Business, Innovation and Skills has announced it will appoint a small business commissioner to handle late payment cases and disputes.
Understandably, many SMEs find late payments (especially from larger companies) an ongoing struggle as it seriously affects their cash flow. The new commission, part of the Enterprise Bill, will assist companies to handle disputes, lodge complaints and seek help for mediation and support services.
Anna Soubry, small business minister, said in a statement, “Small businesses are owed £26bn in late payments and spend millions more chasing down money they have already earned through hard work. This is simply unacceptable – it limits their growth and productivity, and can put an otherwise successful business at risk.”
Soubry continued “The commissioner will tackle the imbalance of bargaining power between small suppliers and large customers, and encourage them to get round the table and sort out disputes at a fraction of the cost of going to court.”
This can only be good news for SMEs and will give businesses a chance to profit and grow.
The commission is part of the new Enterprise bill. You can view the government consultation here.