6 July 2009
Suppliers are stepping up legal action over unpaid bills, a small business group and lawyers report.
The Federation of Small Businesses (FSB) said vendors want to be paid as early as possible and are ready to use litigation to ensure bills are settled promptly. This view was backed by five lawyers who told SM suppliers are increasingly acting against late payers.
The FSB's survey of 4,400 suppliers last week, showed businesses continue to suffer late payment woes. Some 34 per cent of respondents contracted to private sector customers had seen an increase in delayed payment in the past two months.
A further 11 per cent said they had to wait longer than 10 days for public sector clients to settle invoices during May and June. Stephen Alambritis, spokesman for the FSB said more firms are seeking legal advice and relationships were "fraught" over payment terms.