Wednesday 13th June
Mike Cherry, National Chairman of Federation of Small Businesses (FSB) has sent a letter to all FTSE 100 companies urging Chairman and CEOs to take action by agreeing to lead the way in stamping out poor payments
The letter calls on these companies to work with small businesses to help foster a new payments culture in the UK.
Research from FSB shows the hugely damaging impact these practices have on small firms within supply chains with data showing that the vast majority (84%) of small firms report being paid late, with a third (33%) saying at least one in four payments they’re owed arrives later than agreed.
A similar proportion (37%) state that agreed payment terms have lengthened in the past two years, hampering cash flow. Only four per cent say payment terms are improving.
FSB is calling for a non-executive director on boards to be given a specific responsibility for good supply chain practice including making sure the firm is opting to follow best practice and lead the way.