Late Payment Compensation

Empowering Small Businesses: A Call to Action Against Late Payments 26th January 2024 Introduction Late payments can pose a significant challenge for small businesses, impacting cash flow, hindering growth, and even risking insolvency. However, there’s a glimmer of hope on the horizon as the European Union (EU) takes a decisive step to address this issue head-on. The proposed reforms to strengthen the late payment directive aim to provide enhanced protection for suppliers, ensuring timely payments and shielding businesses from potential financial pitfalls. EU’s Bold Move In response to a call […]

In his Autumn Statement the Chancellor announced that businesses would be excluded from bidding for large government contracts (Those larger than £5m) if they have payment times of over 55 days by April 2024, reducing to 45 days by April 2025. Legislation passed this year already means that companies securing public sector contracts have to pay 30-day payment terms within their supply chains for that specific work. The rule will now be extended to all suppliers used by companies bidding for large public contracts. This was part of a range […]