The Department for Business, Energy & Industrial Strategy (BEIS) is asking for evidence from small and medium sized businesses on late payments .
As this is such an important topic for ACE members we are collating responses and would encourage all members to complete our short online survey. We will pass on these responses to BEIS, but also use the information gathered to help shape our future activities in this space. Please note that personal and company details will not be passed on to BEIS. More details on the formal consultation, Creating a Responsible Business Culture, can be found here.
In an introduction to the consultation, Kelly Tolhurst MP, Minister for Small Business, Consumers and Corporate Responsibility said: "The recent collapse of Carillion has highlighted a serious issue around the continuing prevalence of payment practices that negatively affect small businesses. Small and medium-sized businesses are disproportionately affected by late payment. Because of their size they may be less able to cover financial shortfalls, find temporary finance more difficult and more expensive to obtain and have less robust credit management systems".
"Late payment can therefore prevent a business from investing in opportunities to grow. In addition, payment terms beyond 60 days are unacceptable, in the vast majority of cases,
and as the Minister responsible for small businesses I am keen to hear more about the experiences and impacts of late and lengthy payment practices and how we can do more as a Government to tackle the heart of the issue. It is important we continue to look at how we can refine existing measures and explore the use of new measures to eliminate the problem.
I encourage businesses of all sizes to respond to this call for evidence; I want to understand the impacts, experiences and reasonings for particular payment practices and views on what more can be done to create a responsible payment culture."
Our survey closes on 19 November 2018. It should take no more than 15 minutes of your time.