The Minister for Small Business, Anna Soubry, has proposed the creation of a 'Small Business Commissioner' as part of the government's new enterprise bill – which was announced back in May by Sajid Javid, the Secretary of State for Business.
This new role will provide an initial point of contact for SMEs involved in disputes with larger businesses over late payment for their goods and services, and its primary function will be to offer resolution advice.
The government estimates that SMEs across the UK are collectively owed around £26 billion from larger companies, not to mention the additional money and resources those SMEs are forced to spend as a result, in order to chase payment and recover those debts.
Government continues to tackle late payment culture
Soubry, speaking to the BBC, explained: "Ultimately we want to change the culture, so we want to make sure that there's an absolutely fair playing field for the small businesses when they're doing business with the much bigger companies. And at the moment, there's a feeling that sometimes, in some instances, that's not quite where we are. I think that a Small Business Commissioner will help us achieve that."
The Minister for Small Business went on to say that the conciliation service offered by the Small Business Commissioner will enable effective mediation, so that more disputes between SMEs and bigger businesses can be settled out of court.
Portfolio: helping you strengthen your debt recovery
One of the ways you can help to protect your business against late payment is hire skilled and experienced credit control staff. Portfolio's specialist recruitment consultants can help you do that.
We will work closely with you, quickly establishing what position you need to fill and what your specific requirements are. Of course, we know what to look for in all types of credit control professionals, but we want to make sure the person we recruit aligns with the culture of your business.
Call us on 020 7650 3199 for more information, or simply register your vacancy with us online.