It’s now critical that small suppliers get paid within 30 days, says OSBC
The Office of the Small Business Commissioner (OSBC) welcomes the clarity provided by yesterday’s report from the Federation of Small Businesses (FSB) on payment problems faced by small businesses. The current economic situation is causing increasingly difficult challenges for small businesses. Many are having to choose between paying their bills, in order to keep operating, and paying their own suppliers. Some may have further concerns, linked to Covid-19 staffing or trading relationships with the EU, creating additional barriers to success.
The best way to make sure these businesses survive 2022 is to pay for their products and services as quickly as possible, and certainly within 30 days. If it has been agreed that payment will arrive on a certain day, it is critical for small businesses that the money arrives on that date. Managing cashflow is key to survival, and that means certainty as to when payments will be received.
The FSB has found that 30% of the firms in their survey are struggling to get paid. This is a challenging situation that is likely to get worse. The OSBC stands ready to help those firms. Our caseworkers can help resolve payment disputes between small firms and their bigger customers. Given the economic situation it is more important than ever to us to apply our expertise to helping as many small businesses as possible.