Category: Small business insurance
All members of the supply chain should make an effort to avoid the problem of late payments, small business insurance holders have been told.
Trade, investment and small business minister Lord Davies pointed out that the public sector is attempting to improve companies' cashflow by ensuring that as many payments as possible are made in a timely fashion.
However, the minister also said that suppliers themselves should take steps to reduce the problem, through measures such as producing better quality invoices, actively chasing payments and using customer relationship management.
Lord Davies also called for larger firms to sign up the government's Prompt Payment Code, which demonstrates that they are committed to settling their bills promptly.
"Government is playing its part - but every part of the supply chain must help ensure prompt payment," he added.
This month, Forum of Private Business called for the Office of Fair Trading to investigate the problem of 'phoenix' firms, or companies that cease trading without paying suppliers, only to start up again under a different name.
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