Large businesses could be fined for failing to pay SMEs on time

Large businesses could be fined for failing to pay small and medium-sized business suppliers on time, as part of a Government crackdown on SME late payments.The move will see entire company boards held responsible for supply chain payment practices, and not just finance directors, as previously mooted. The Government has also announced a new £1m fund to to encourage businesses to use technology to simplify invoicing, payment and credit management. And the Small Business Commissioner could have beefed-up powers to tackle SME late payments and binding payment plans. SME late payments result in the closure of more than 50,000 small businesses each year, according to the Federation of Small Businesses, costing the economy £2.5 billion. On average, small businesses are owed £80,000 apiece. In 2018, Britain’s small businesses collectively spent £6.7bn just to collect money they were already owed – a huge drain on investment.