Campaigns focus on: Late payment
21 February 2010
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One of the key roles of the FPB's campaigns department is to fight for the better protection of suppliers. In this article, we focus on the main way we do this, by campaigning against late payment. Plus, tell you how you can get involved.

The issue of late payment has consistently been ranked as one of, if not the, biggest problems for you, our members. It can cut off your cash flow and means that, effectively, you are providing interest-free credit for your clients.
 
Legislation does exist (in the form of the Late Payment of Commercial Debts Act 1998) that gives you the legal right to compensation for late payment. But, understandably, few suppliers are willing to put this legislation into practice. That's why we fight against late payment on your behalf.
 
In recent years, we've repeatedly named and shamed companies who squeeze their suppliers by extending payment terms. We can't force them to change their minds or make them pay more promptly, but we can embarrass them by highlighting their poor policies through the media. And, in a world where big businesses are increasingly keen to boast of their ethical credentials, this can have a powerful effect.
 
Last month, we welcomed the introduction of a supermarket ombudsman tasked with ensuring suppliers get a fairer deal from the major retailers. We also criticised Iceland boss Malcolm Walker when he insisted that the bullying of suppliers by big businesses was 'a fact of life'.
 
However, we don't restrict the fight against late payment to the private sector. We recently used the Freedom of Information Act to find out how quickly public bodies are paying their bills – particularly after the Government urged them to pay all bills in 10 days in order to help smaller firms through the recession.
 
We discovered that this message only appears to have filtered through to a select few organisations in local government. Some councils appear to be paying their suppliers literally within a matter of hours, which of course is something to be welcomed. However, many others still seem oblivious to the importance of prompt payment – presumably much to the detriment of the small businesses in their areas.
 
We found a similar lack of consistency when we surveyed the NHS, with some health trusts demonstrating an admirable dedication to paying suppliers on time and others appearing to place no emphasis on the issue. Now, following feedback from members, we plan to carry out similar research into the payment practices of the UK's police forces.
 
If you or anyone you know is suffering as a result of late payment, either by a public or private organisation, we'd appreciate you letting us know. We won't disclose your identity to anyone else if you don't want us to – please email us at campaigns@fpb.org
 
The FPB's campaigns team would also like to thank the 366 members who signed up to take part in our Economy Watch panel. Covering issues like business confidence, access to finance and recruitment, this panel will allow us to monitor the effect economic changes have on small firms on a month-by-month basis.


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