Government opens late payment complaints procedure for small suppliers
A late payment complaints procedure has today beenlaunched by government to help small business owners challenge poor supply chain practices by large firms.
The’start of a formal process’seesthe small business commissioner handed hisfirst duties, an office first announced by former small business minister Anna Soubry in 2015 but only recently filled.
Having appointed former Conservative MP Paul Uppal into the role in October, the government has now published step-by-step guidance for dealing with late invoice payments and unfair contract terms.
A new website has been launched to act as the central resource for unpaid invoice complaints, with instructions on how to escalate payment issues. A three-stage check, chase and choose? process has been established to allow small business owners to challenge poor supply chain practices by larger clients.
The first two stages will help owners challenge clients themselves, while the final stage provides instructions for accessing legal advice, negotiating solutions and submitting complaints to the commissioner.
However, certain cases will not be considered as within the commissioner’s authority. Supermarket suppliers have been told to complain to the Groceries Code Adjudicator, construction firms should contact the correct industry body, and government suppliers must use the Mystery Shopper service.
The service is available to businesses of under 50 staff, chasing payments from companies of over 50 staff.
In a statement, Uppal said the site would help small business owners know their rights? and offer them an important point of contact to his office.
Welcoming the establishment of a formal process, Mike Cherry, chairman of the Federation of Small Businesses (FSB), said small business growth remained stifled by a poor payment crisis? in Britain, with almost a third of invoices paid late at an average value of 6, 142.
this not only impacts on the small business and the owner, it is damaging the wider economy, Cherry said.
the small business commissioner is crucial to turning the tide on this late payments culture.FSBwill be encouraging small businesses affected to use the service, and we hope then to see clear actions taken to tackle the worst examples of supply chain bullying.
Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.