It doesn’t matter if you are an employee, a small business owner or self-employed, everyone deserves to be paid on time. Visit our Fair Pay Fair Play campaign hub to find out more and support our campaign.
Find out more
Small businesses are owed on average £6,142 mostly by larger firms not paying them for goods and services on time. For more than 10 years we’ve been highlighting the impact of late payment, supply-chain bullying. Practices range beyond simply paying late; we have seen retrospective discounting (larger firms forcing a discount of an already agreed price), paying-to-stay (smaller companies pay larger firms to remain a supplier, but without the promise of any actual work). FSB tackled Carillion, 6 months before it collapsed, as we saw they were paying suppliers in 126 days – more than 4 months.
Our research shows 37% small businesses have run into cash flow difficulties, 30% have been forced to use an overdraft and 20% cite a slowdown in profit growth. If all payments were made on time 50,000 more businesses could be kept open each year, whilst the UK economy would receive a £2.5 billion boost.
Our analysis shows that we need to transform boardroom culture in our largest companies. The Small Business Commissioner has been operational for a year, and he should now use the ‘Name and Shame’ powers he holds to combat the worst actors; however he can only do this with the right information, so members affected should get in touch with him via his website. FSB and the Commissioner will be analysing the Duty To Report returns to help raise the alarm on the worst performers. FSB is now campaigning for every large company to have a Non-Executive Director responsible for good supply chain practice – reporting to the Board as head of a sub-committee, reporting to the AGM, and writing in the Annual Report of what the company is doing to help their suppliers. The Government is listening, and has adopted this model for its own Departments
In 2015 the Scottish Government launched the ‘Business Pledge’, a voluntary scheme to encourage businesses to adopt good practice.
We pressured the government to include a pledge on prompt payment to help get Scottish small businesses paid on time by their big customers.
FSB Debt Recovery gives you the opportunity to recover 100% of the money you are owed and in most cases this costs absolutely nothing
FSB in Scotland on prompt payment suspensions
FSB in Scotland welcomes moves to change payment culture
Why FSB is launching a new product to reduce crippling late payments for SMEs
Late payment plan early Christmas present for small firms
Download the late payments guide
Download the late payments report
Visit the Prompt Payment Code