Late payment issues

Small Business Commissioner: Late payment impact more than financial Outgoing Small Business Commissioner Philip King says the reform delivered by the Office of the Small Business Commissioner he is most proud of is a tweak to the Prompt Payment Code which means companies are now obliged to pay small businesses within 30 days — half the time previously set. With analysis from debt collection agency Intrum showing that the gap between payment terms and when the bill is actually paid has fallen over the past year - from 15 to ten days among public sector customers, and 14 to 11 among business customers – Mr King says this stems from big businesses treating SME suppliers more compassionately during the coronavirus crisis. Mr King said that the pandemic has highlighted the stress late payments can prompt among small business owners, saying there has been “a sharp realisation that we’re not just talking about a financial impact when a small business doesn’t get paid. It’s much more than that”, saying SME leaders have flagged “wellbeing issues, mental health issues, sleep deprivation, eating disorders, you name it”.