Rugby’s MP Mark Pawsey has welcomed news that action on late payment has been included in the upcoming Small Business Bill.
Small businesses do not have big cash reserves to tide them over month to month, so as their books fill up, prompt payment from customers higher up the supply chain is essential. Britain’s first ever the Small Business Bill, announced in the Queen’s Speech, will require large companies to publish their payment practices. This will give small businesses the information they need to negotiate fair payment terms and have their invoices paid in a timely fashion.
Mark said "To help speed up payment, the Small Business Bill will also allow small firms to use ‘cheque-imaging’ software on their smartphones and tablets, enabling faster clearing processes and allowing funds to be accessed more swiftly, with a goal of cheques clearing in one day.
"From running my own business in Rugby for 25 years, I know exactly how important it is to be paid in a timely way. When making decisions on staffing or investment small business-owners need the certainty that they won’t be left out of pocket at the end of the month.
"This is an issue I fully support for all of Rugby’s small businesses, and I’m delighted that the Government are taking action. Requiring large companies to be upfront about their payment practices will ensure that everyone knows where they stand, and is an important step in driving a more responsible payment culture."