The CBI today responded to the Government’s announcement that there will be a consultation on tackling late payments.
Katja Hall, CBI chief policy director, said:
“Late payment is a serious issue for all businesses but particularly for smaller firms, as cash flow is their life blood.
“Businesses already have a number of routes for recourse if they are paid late, but the reality is that few choose to act on late payment for fear of fall out with their customers.
“The CBI backs the Prompt Payment Code but there are also other ways of addressing late payment – for example some suppliers will choose to work with customers through supply chain finance agreements.
“As the voice of small, medium and large businesses, the CBI welcomes this consultation and looks forward to working closely with Government to improve payment terms in the UK.”