(PRWEB UK) 14 May 2013
The Forum of Private Business gave evidence that over one million small and medium-sized enterprises (SMEs) had experienced issues with late payments, and proposed MPs look at new measures to combat the problem.
One of the proposals suggested by the FPB was for all organisations bidding on Government contracts to sign the Prompt Payment Code (PPC) which encourages and promotes best payment practice between organisations and their suppliers. Furthermore, the not-for-profit organisation wanted clarity from the Government on how the FPB can use the EU Directive on prompt payment to represent its members on the issue.
Public authorities were also brought into the discussion as any organisations that dispenses taxpayers money to small business, including NHS trusts and police forces, should also become signatories of the PPC.
The FPBs head of policy, Alexander Jackman, said, “Late payment is having a significant impact on business development, productivity and growth. Research has suggested 35% of small businesses have seen a reduction in profit and 16% have seen a noticeable reduction in turnover as a response to late payment or bad debts.
SmartDebit constantly keep up to date with the latest developments and key focuses in the payments industry. Providing organisations across the UK with the ability to automate their business-to-business payments via Direct Debit, a spokesperson commented:
It is encouraging to see the FPB addressing the late payment culture in Parliament, and actively proposing measures to reduce the impact that it is having on businesses across the UK. Cash flow is key due to the knock-on effect late payments have on businesses, as the FPBs research shows. We urge all businesses to review their payment practices and introduce automated facilities where possible in order to improve financial control.
SmartDebit is the UKs leading Direct Debit bureau, specialising in payment processing on behalf of businesses, not-for-profits and public sector authorities since 1998. A Bacs approved bureau scoring Excellent ratings in all five categories of the Bacs audit, and is ISO 27001 certified.
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