Anil Stoker, CEO of Market Invoice has weighed in to the debate on the support needed to be given to SMEs struggling against slow payments from larger businesses. As Cheriton commented back in March, the first-ever Small Business Bill, the Small Business, Enterprise and Employment Act (SBEE) has been promised to enable radical action on prompt payment to end the late payment culture. However, whether big companies take any real notice of paying SMEs on 30 day terms remains to be seen.
From Stoker’s own research at Market Invoice, 56 per cent of invoices from large companies were paid beyond agreed terms, a whole 17 days late on average. One in 10 of these invoices was paid more than 30 days late. Stoker goes on to say that “The cause is a combination of bureaucratic inefficiency and calculated cost-saving in large organisations which has created a culture which takes advantage on the vulnerable position smaller businesses find themselves in when dealing with important customers.”
Sajid Javid, the new business secretary is offering help, but small businesses need real results.