Support for SMEs struggling to recover invoices

The government has announced a new set of measures to tackle the issue of late payments faced by small businesses in the UK, costing them an average of £22,000 per year and causing around 50,000 business closures annually.

We wanted to share this important news as so many of our SME community have been impacted by this. 

The original article link is below, but to summarise, the key elements are:

- This initiative will replace the old Prompt Payment Code, it will require large businesses to report their payment practices in annual reports and adhere too good payment standards, receiving gold, silver, or bronze status based on how quickly they pay suppliers. The aim is to establish 30-day payments as the standard.
  
- The government has announced a new set of measures to tackle the issue of late payments faced by small businesses in the UK, costing them an average of £22,000 per year and causing around 50,000 business closures annually. Key elements include:

- Replacing the old Prompt Payment Code, it will require large businesses to report their payment practices in annual reports and adhere to good payment standards, receiving gold, silver, or bronze status based on how quickly they pay suppliers. The aim is to establish 30-day payments as the standard.

-  New legislation will ensure that large companies include their payment performance in annual reports to increase transparency and accountability.

- While some small businesses and industry leaders welcome these changes, others criticise the new code for being voluntary, expressing concerns it won’t be effective unless made mandatory.

Overall, it appears the government aims to create fairer payment practices, but some feel stronger enforcement is necessary for meaningful change. Further consultations will consider additional measures to address late payments.

You can read the FULL article from Moneydonut.co.uk here