FSB finds late payment crisis has worsened during coronavirus lockdown

The Federation of Small Businesses (FSB) has found that the UK's late payment crisis has worsened during the coronavirus (COVID-19) lockdown.

62% of small businesses have been subject to late or frozen payments during the COVID-19 pandemic, according to research carried out by the FSB. Just 10% of small firms have agreed changes to payment terms with their clients.

65% of small businesses that supply goods or services to other businesses have experienced being paid late or having payments frozen.

The FSB has called on policymakers to give the Small Business Commissioner additional powers to investigate and fine repeat late payment offenders.

'Before the COVID-19 outbreak struck, many small firms were already under immense financial pressure because of late payments,' said Mike Cherry, National Chairman of the FSB.

'Cash is still very much king for small firms, and withholding it has pushed many to the brink at a time when they're at their most vulnerable. Our endemic culture of treating small businesses as free credit lines against their will must be brought to an end.'

About us

We were established over 80 years ago

We continue to build on our enviable reputation for providing excellent advice and first class service to our business and personal clients alike...

Bere Mill Cows image by Henry Lawford, licensed under CC 2.0 license.

© 2021 Montpelier Professional (Galloway) Limited . All rights reserved. We use cookies on this website, you can find more information about cookies here. powered by totalSOLUTION

Newton Stewart Office : Montpelier Professional (Galloway) Limited , 1 Dashwood Square, Newton Stewart, Dumfries & Galloway DG8 6EQ
Stranraer Office : Montpelier Professional (Galloway) Limited , Challoch Inn, Leswalt, Dumfries & Galloway DG9 0LJ

VAT No 151 179 030. Registered in England and Wales No. 06025692. Registered Office: Sanderson House, Station Road, Horsforth, Leeds LS18 5NT. Montpelier Chartered Accountants is a trading name of Montpelier Professional (Galloway) Limited.

Professional Indemnity Insurers: Arch Insurance, 5th Floor, Plantation Place South, 60 Great Tower Street, London, EC3R 5AZ