Large firms 'destroying' small business through late payment

The Institute of Directors (IoD) has blasted large companies for late payments to their smaller suppliers, and stepped up its campaign for government intervention to tackle the problem. Alan Shipman reports.

The IoD's latest survey, published on Monday, shows late payment to be the biggest concern of small and medium enterprises and cites large corporate buyers' lengthening credit periods as the main concern. Its arrival coincided with a Forum of Private Business (FPB) survey showing 75% of respondents citing late payment as a "considerable threat" to their viability, and over 60% wanting the right to make anonymous complaints about large customers to competition regulators.

IoD director-general Miles Templeman accuses the government of sending the "wrong signals" to big business through the mid-year downsizing of its SME service, which included the disbandment of a task force that had been working on late payment issues.