Small business is at the mercy of large organisations. The latest survey undertaken by Zurich insurer shows that large organisations take advantage of their subcontractors. According to Zurich insurers, small business owners faced up to 53 per cent overdue payments – payments due by large organisations.
Almost half of small businesses have to wait three months before an invoice is settled. Some have to wait for six months before full payment is made.
According to the survey, the average amount that small business owners are owed is 16,250 pounds. The Federation of Small Businesses (FSB) in the UK believes that if these subcontractors had taken effective action to get their invoices paid, approximately 50,000 firms would not have collapsed in 2014. This closing of small firms meant an economic loss of 2.5bn pounds. According to the survey the problem is getting worse.
According to Zurich, the behaviour of large businesses is “Unsustainable. Large business should be accountable, they should pay on time”.
Many believe that government needs to address the situation of late payments. Policy makers are in the process of appointing a small business commissioner to act as an advocate for subcontractors. More information on the Commissioner for Small Business
QStimate is ready to help you get what is owed to you. Contact QStimate, Quantity Surveyors/ Commercials for help with payment.