04/09/2009 - SMEs 'affected by late payments'
Delays in payments by big brand names have led to losses in a number of small and medium-sized enterprises (SMEs), a study has found.
According to research by the Federation of Small Businesses (FSB), firms were found to be waiting up to four months for invoices to be paid by several big companies.
Last year, as many as 4,000 businesses faced hardships due to late payments, while a third of FSB members reported to have waited longer amid economic crisis.
A number of small firms have contacted the FSB over the last year complaining about payment delays by big businesses, including delivery firm TNT, shopping website Amazon and brewer Carlsberg.
The FSB has urged firms to register to the Prompt Payment Code, a programme supported by the Government, in order to highlight best practice and help boost the cash-flow of SMEs during tough times.
John Wright, National Chairman, Federation of Small Businesses, said: "Poor payment practices in both the public and private sector can drastically affect cash-flow for small firms at a time when business owners are doing their best to hold on to precious funds."
Copyright © Press Association 2009
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