Wednesday 18th March, 2020
Philip King, the Interim Small Business Commissioner is calling on the UK’s big businesses to speed up payments to their small business suppliers wherever they can.
The Commissioner has appealed to those in charge of supplier payroll to urgently consider accelerating invoice payments to the small business community.
The call has united all of the UK’s business groups in the wake of the disruption caused by the Coronavirus. It is backed by the British Chambers of Commerce, Enterprise Nation, Federation of Small Businesses, Institute of Directors, IPSE, ICAEW, and The Entrepreneurs Network.
Interim Small Business Commissioner, Philip King said: “For small businesses, cashflow is the difference between survival and failure. Coronavirus has put unprecedented pressure on the UK’s SMEs. When the cash runs out, businesses collapse. While the banks and the Budget have set out important action and relief, the reality for small firms is that short term cash flow is still the most important thing.
“We want to urge all businesses to accelerate payments to small suppliers wherever they can. If the invoice is approved and ready for a future payment run, pay it now – rather than wait – and get money into the supplier’s account.
“It may not have occurred to accounts departments to think in this way. But this simple solution is a powerful gesture complementing the support from government and banks. It will also have a more immediate impact and may remove the need to make loan arrangements that will inevitably take effort and time spent outside the core business – and then time to come through.