A Bridge Too Tsar? Business Owners Skeptical Late Payments Minister Can Solve Cashflow Crisis
In 2015, half of all UK small business invoices were paid late
UK business owners don’t believe the impending arrival of a late payment tsar will do anything to help ensure small firms and freelancers are paid on time, according to a report by FreeAgent.
The survey revealed that just 2% of UK freelancers and micro-businesses believe the forthcoming commissioner will have any impact whatsoever, with 57% of respondents not even aware the position was due to be filled.
The is currently a ‘cashflow crisis’ in the small enterprise space, with just 51% of all invoices paid on time in 2015.
Initially announced in July 2015, by then business minister Anna Soubry, its envisioned the tsar will help tackle the payment “imbalance” between small and larger firms by providing advice and support on how to avoid and resolve disputes, offering access to mediation services, and investigating complaints over unfair business practices.
Ed Molyneux, CEO and co-founder of FreeAgent, said:
“Late payment is a huge problem that has needed to be addressed for a long time. We’ve found that the overwhelming majority of freelancers and micro-business owners have experienced a late paying client at some point in their career, and there are a significant number of invoices that are paid late in the UK every year.
“However, while it’s good news that the government has decided to address this issue with its search for a small business commissioner, it’s clear from our research that the micro-business community remains skeptical about the move.”
Having trouble with late payments? Here’s how to deal with them.