SMALL-BUSINESS representatives are stepping up efforts to secure earlier payments on invoices.
The Federation of Small Businesses (FSB) in the North East is working with the Department for Business Innovation and Skills to promote the Prompt Payment Code.
More than a third of FSB members have suffered longer waits for payment in the past two months.
The FSB, backed by One North East, says the Prompt Payment Code highlights best practice and should boost the cash flow of small firms during these tough times.
The FSB is also calling on the Government to emulate a measure recently introduced in Scotland to include provision for prompt payment in all government contracts, requiring each business in the supply chain to pay and be paid on time.
Regional chairman Colin Stratton said: “Poor payment practices in both the public and private sector can drastically affect cash flow for small firms at a time when business owners are doing their best to hold on to precious funds.
“Larger organisations must be given a loud and clear message that they must stop using the recession as an excuse to use small firms as a source of credit.”
