The Queen Pledges To Protect Small Businesses From Late Payment

The Queen Pledges To Protect Small Businesses From Late Payment

The Queen Pledges To Protect Small Businesses From Late Payment

Do you find yourself constantly awaiting delayed payments from large companies for your services?

Chasing fees long after the payment deadline could be a thing of the past with proposed new changes that could protect your business rights.

The Queen’s speech last week highlighted government plans to cut £10bn worth of legal restrictions and policy, allowing disputes between small and large business to be solved quickly and effectively with the help of independent regulators.

But what does this mean for your business?

The new Enterprise bill proposes £10bn worth of cuts to lengthy and restrictive legislation, as well as allowing small businesses to reclaim their payments outside of the courtroom with the creation of a Small Business Conciliation Service.

Small Business Conciliation Service

Focusing on payment disputes between small and large enterprises, the creation of the new independent advisory body could be the key to avoiding expensive lawsuits that can obliterate small businesses. Rather than ratcheting up a hefty load of fees or losing the money entirely, new regulators could help you reclaim your fees without the hassle of a court case.

What does this mean for your company?

With over half of all organisations in the Federation of Small Businesses (FSE) stating they had not been paid, or received money well past deadline, it’s unsurprising that an independent enquiry may be launched into the problems that small businesses face.

These proposed changes could mean preserving relationships with valued clients as each party reaches a mutually beneficial conclusion, facilitating continued business and resolving disputes before both the fees, and the problem, escalates to court.

Will these changes go ahead?

As late payment has always been an issue facing small businesses, this new bill is clearly the latest in a line of government initiatives aimed towards finally tackling the problem. Set to go ahead after a summer-long consultation, if passed the slashing of outdated legal red tape, can only stand to encourage our country's entrepreneurial flair, as well as nurturing the growth of existing businesses.

So what do you think?

Do you think the changes will go ahead? And if so what will the impact be for your business? 

Do you have any advice for other small businesses struggling with reclaiming late payments from clients?