Being paid on time is a common problem for suppliers, threatening the cash-flow and survival of many businesses. It can be a particular issue for small and medium-sized businesses, with 22% of the SMEs interviewed in the Department for Business, Innovation and Skills' latest Business Barometer for whom late payment was a problem, saying that half or more of their customer base pays late. Although late payment is one problem, another is long payment periods. Larger corporate customers often hold the power in the supply relationship and faced with their own cash-flow difficulties may even change agreed invoice payment periods, imposing extended payment terms on their suppliers. The EU has introduced new rules to try to empower suppliers. Business Minister Ed Davey commented in a Parliamentary debate that the Government intends to implement these new rules in the first half of 2012, earlier than the EU deadline in 2013. With the time involved in a consultation process and the Government's policy of not implementing EU directives before the EU deadlines (unless there are compelling reasons to), implementation in the first half of 2012 seems unlikely. So what will be the impact of the new rules?
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