The UK Government’s announcement of its toughest-ever laws to tackle late payments has been welcomed by one of the country’s leading SME finance providers — but a call has been made for further action to protect small businesses from wider economic threats.
Under the new legislation, large companies that mistreat suppliers could face multimillion-pound fines, and maximum payment terms will be introduced in a bid to stamp out damaging practices that threaten the survival of small firms.
Responding to the announcement, Jonathan Andrew, CEO of international SME financier Bibby Financial Services (BFS), said that while the move is a long-overdue step in the right direction, it must mark the beginning of more robust government support for SMEs.
Jonathan Andrew, CEO at Bibby Financial Services comments:
“News that the government is taking action to reduce the impact of late payments for small and medium sized businesses is long overdue. So far, attempts to crack down on this issue have failed to have meaningful impact, with our research revealing that 58 percent of SMEs believe the latest measures, such as the Fair Payment Code, don’t go far enough to protect them.
“However, this latest announcement is only the first step. Businesses need to see these plans convert into tangible action. Crucially, late payments are not an isolated issue. Bad debt, caused by non-payment or customer insolvency, is an equally challenging issue eroding profit margins of small businesses.
“With businesses facing wider economic challenges, such as supply chain disruption and stubborn inflation, it’s critical the government follows through and demonstrates its commitment to rebuilding SME confidence.”
Bibby Financial Services (BFS) has been supporting Yorkshire businesses from our Leeds office for almost a decade, helping SMEs across the region unlock working capital and drive growth.
Jonathan adds, “our regional office model enables us to co-locate teams for closer collaboration, and our Leeds office is home to colleagues from both our Invoice Finance and Asset Finance divisions. Operating in the UK for over forty years, BFS has 10 offices across the UK with offices in 8 additional global markets. We support around 8,500 businesses across more than 300 industry sectors.”
Image provided by Bibby Financial Services
