Sajid Javid, the new Secretary of State for Business, has announced that the government will establish the Small Business Conciliation Service.
The service aims to provide advice and support to SMEs involved in disputes with other businesses – particularly those subjected to late payment for their goods and services.
According to the Department for Business, Innovation and Skills, the UK's large businesses owe smaller businesses roughly £32 billion in late payments.
The Small Business Conciliation Service and its objectives
In the lead-up to the 2015 general election, both Labour and the Conservatives vowed to protect SMEs from late payment through the establishment of an SME-dedicated organisation. Had Labour won the election, theirs would have had a similar structure but would have been called the Small Business Administration.
Javid said: "As one of our first acts, we’re introducing the enterprise bill. First and foremost, it will serve the interests of small business. Second, it will simplify and clarify the business environment in this country. And third, it will focus on jobs."
He added: "The manifesto promises a further £10 billion of cuts in red tape over the coming Parliament. This £10 billion is going to be harder to slash than the previous £10 billion."
How companies can protect themselves against late payment
Many big companies pay their suppliers late because they assume that there will not be any consequences – they assume that you are reluctant to take action.
If you have experienced credit managers and risk analysts, you will be able to identify potentially problematic customers and clients. But it's not just top-level staff that you need to be concerned about – your entire credit control department must be staffed with the right people. In other words, it needs to be made up of committed professionals – and Portfolio Credit Control can help you find them.
Operating on a nationwide basis, we can help you fill any vacancy – whether it is a management position or a collections role. We can also tailor our service so that we recruit your staff according to your exact requirements and expectations.