Business News
Helping small businesses deal with late payments
At the end of last year, the office of the Small Business Commissioner was launched in Birmingham. The main purpose of its role is to help SMEs deal with late payments. Here the office and its commissioner, Paul Uppal (pictured), explain to Chamberlink how they are ensuring small businesses are getting fair treatment.
at hand via our free service. It can be difficult for any
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business dealing with late payments and the impact this can have; worrying whether or not they’ll get the money through in time to pay staff, or even their own suppliers. So, it’s incredible to believe that so many companies facing such problems are reluctant to do anything about it, preferring simply to grin and bear it. The collapse of Carillion plc in
January this year should be a lesson to all. The company left much of its supply chain unpaid – many small businesses – and is a costly example of how small business is often at the back of the queue when it comes to getting paid. Based in Birmingham, the office
of the Small Business Commissioner (SBC) was launched in December 2017 to ensure fair payment practices for Britain's 5.7 million small businesses and support them in resolving their
ealing with late payments shouldn’t make or break a small business, now help is
‘I aim to give small businesses the support they deserve, in particular to ensure fair payment practices’
payment disputes with larger companies. Established under the Enterprise
Act 2016, the SBC is headed by the Small Business Commissioner, Paul Uppal, and is part of a package of measures to tackle late payment practices between businesses across England, Scotland, Wales and Northern Ireland. It is now estimated that around a
third of payments to small businesses are late with the average value of each payment at £6,142 and it is currently estimated that some £14 bn is owed to small businesses. This has led to 20 per cent of
small businesses running into cash flow problems due to late payments, resulting in some joining the 50,000 business deaths that occur in the UK every year. Furthermore, if the late payments due to them were paid on time, it
could potentially deliver a £2.5 bn annual boost to the economy. Commenting on nature of the
challenge, Paul Uppal said: “Successful businesses are built on integrity, entrepreneurial spirit and trusting relationships and I want to highlight that Britain can be the best place for new entrepreneurs to establish and grow their own business. However, late payments put their health at serious risk and in turn affect not only the livelihoods but the wellbeing of entrepreneurs and their employees alike.” Since its launch, the SBC has
gained insight and intelligence on the unethical practices of larger businesses imposing invoice discounting in order to receive prompt payment. Mr Uppal continued: “I wonder
how a typically employed person would feel if they received their salaried pay cheque only to find it
had been discounted by five, 10 or even 20 per cent, just because their employer had paid them on time? “They would still have their own
monthly outgoings to meet – mortgage or rent, utility bills, food, clothing and travel costs – like any small business.” The SBC works closely with
trades bodies, federations, business groups and their representatives, local authorities and national government to support small businesses who are experiencing difficulties being paid. Mr Uppal said: “Through my role
I aim to give small businesses the support they deserve, in particular to ensure fair payment practices, which are essential in helping them to thrive.”
For further information visit
www.smallbusinesscommissioner.
gov.uk
President’s medal for leading business figures
Two leading Birmingham business people have been awarded the Chamber president’s medal. Paul Anderson, head of office at Deutsche Bank, and Professor Julian Beer, deputy vice-chancellor at Birmingham City University, were honoured by former Chamber president Paul Kehoe. The medals are awarded to individuals in the business community as recognition of the outstanding contribution they have made to the Chamber and the city over the past year. Professor Beer was influential in
the success of the British American Business Council (BABC) conference Birmingham this year, attended by more than 500 delegates. He said: “One of the highlights
was bringing the British American Business Council’s main Transatlantic Conference to Birmingham in June 2018 and this
8 CHAMBERLINK November 2018
was a major achievement for the business community. “As a university that prides itself on
serving the needs of its local community, working with organisations like the Chamber to support the creation of economic growth, improved skills and new trade
President’s men (from left): Paul Faulkner, Julian Beer, Paul Anderson and new president Saqib Bhatti
deals is of the utmost importance”. Mr Anderson was recognised for
his ongoing support for the young professional’s arm of the Chamber, Future Faces, and leadership of Deutsche Bank locally. He said: “I was surprised and delighted to be awarded the
president’s medal, particularly since it was a recognition of the importance to the region of improving mental health, creating career opportunities for young professionals and supporting local causes and businesses and the role that employers have to play.”
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