Late Payment Commissioner Stumbles
23rd April 2018
The value of the government’s small business commissioner has come under scrutiny after officials admitted the questionable size of his caseload.
The appointment of a small business commissioner highlighted a shifting of priorities within the government. While former Conservative MP, Paul Uppal, was appointed back in 2016, it wasn’t until the collapse of construction giant, Carillion- and the highly publicised supply-chain-damage- that the issue of Late Payment really took centre stage. Now a new report has announced that the Commissioner’s appointment may be doing little to solve the late payment problem.
According to a report by the Federation of Small Business (FSB) the commissioner has received little more than ten complaints a month since December. Considering the damage that late payment inflicts every day, the hesitancy of business owners to communicate their grumblings is what needs to be scrutinised.
Former Conservation MP Paul Uppal was appointed as commissioner last year and was awarded the power to resolve disputes between companies, but not to levy fines. This may be where the problem lies, as small businesses demand a tougher approach and may perceive this platform as too facile.
At the Credit Protection Association, many of our members have suffered at the hands of late payers and even complete non-payers. As victims, they demand more than a polite conversation with their perpetrators, and would instead prefer to see their money returned to them. Our debt recovery services at CPA ensure this is carried out with limited expense and hassle to our member. While few are aware of it, there is also some late payment legislation that gives victims further monetary compensation.
Rudi Klein, chief executive of the Specialist Engineering Contractors group, which represents tens of thousands of small businesses, said he was concerned about the commissioner’s slow start. “The government must review the role to give him greater powers to investigate companies suspected of abuse of small firms and, in the most serious cases, to fine them.”
Mike Cherry, national chairman of the federation, said: “We have the worst late payment culture in Europe, with 5p in every £1 of revenues written off because of poor payment practice . . . Things have to change, and fast.”
A spokesman for the commissioner said: “We are a new organisation and we need a certain amount of space. We are being proactive in raising our profile and awareness using a number of methods.”
Late payment continues to plague small and medium-sized businesses, putting firms out of business and destroying relations with suppliers. While the government offers up initiatives and awards more members of parliament with more authority, late payment persists. Until the government has the courage to implement a tougher approach small, big and large businesses will continue to pay late. In the meantime, business owners can help themselves and their suppliers, and combat the problem head-on.
At the Credit Protection Association, our debt recovery services chase down late payers and investigate unpaid invoices, and recover funds owed to our members. Our credit management products, from credit checks to company directories, all ensure our members’ financial paperwork is up to date and that no outside forces will damage this new financial freedom.
Not only does our team free up cash flow and spring clean finances, we also have a special scheme using a little-used legislation that helps business owners realise a hidden source of cash and unlock hidden potential within their business.
Get in touch with our team, using the details below, for more information.
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