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In the wake of a recent report which accuses the UK’s largest companies of
‘strangling’ smaller enterprises and conducting business unfairly, Bibby
Financial Services is urging owners and managers to stand firm over unfair
treatment and late payment from their larger counterparts.
Accounting for over 95% of the UK's 3.7 million businesses and employing 12.6
million people, large corporates must wake up to the importance of small
business contribution to the prosperity of the economy.
David Robertson, chief executive of Bibby Financial Services, believes
respecting their smaller counterparts and operating on fair contractual terms is
fundamental for larger companies hoping to maintain a reputation for good
business practice.
He explained: “Small business owners and managers rely on a healthy, steady cash
flow, and timely payment of invoices is crucial to sustain and keep them moving
forward.
"Unfortunately, many owners and managers feel bullied by their larger
counterparts, fearing that chasing late payments could damage relationships and
result in the loss of a major contract.
“It is both good practice, and a legal requirement, for large companies to offer
and meet payment terms in an agreed period when dealing with a smaller business.
"Research shows corporates typically take 64 days to pay invoices, and while
bigger businesses are able to work under these terms, smaller companies need to
balance their books to carry on functioning.
“However, it is not all bad news, larger companies can provide an excellent
source of revenue for smaller businesses, providing the relationship starts on
the right footing with fair financial practices agreed and adhered to from the
outset.”
Source:
RedAlert
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