Big companies delaying payment to smaller suppliers
The Federation of Small Businesses has shed light on the worrying trend amongst larger companies delaying payment to smaller suppliers.
In an article featured in the Times John Wright, chairman of the FSB, says that some suppliers are waiting for periods of well over three months to be paid for goods and services:
"Big companies appear to be aware that small businesses are afraid of taking them on over payment terms and are abusing their power as a result. Making small businesses wait 105 days for a payment and charging them for the privilege is nothing short of outrageous."
The trend has increased considerably within the current financial climate with some larger companies using the credit crunch as an 'excuse to put in place permament arrangements for long term payment periods', one FSB representative said.
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Small business accounts systems
