0808 1644 222

FSB urges government to improve supply chain procedures


0
July 4, 2018     |     Posted by:     |     Category: Blog

A new report from the Federation of Small Businesses (FSB) has revealed that many small firms in the supply chain of public sector projects suffer as a result of late payment.

The study suggests that 25% of small businesses in public supply chains have experienced late payment more than 50% of the time, while only 12% have been provided with the necessary skills to support them. More from the blog: “Late payments remain a real problem for SMEs.”

The FSB has called on the government to introduce reforms to public procurement, in order to promote best practice and help ensure that large government suppliers pay on time.

According to FSB Chairman, Mike Cherry, recent market failures highlight the need to improve supply chain practices.

Mr Cherry commented: ‘Healthy supply chains are a win-win for businesses and tax payers as they create genuine competition, drive productivity, help close skills gaps and fuel economic growth’.

The impact on small businesses

Understandably the biggest impact on small businesses is cash flow.

Being a smaller link in the supply chain often means less ‘buyer power.’ This can result in agreeing to longer payment terms from ‘bigger’ businesses, whilst being held to shorter payment terms from their own suppliers. Having to pay costs before receiving payment from customers in the short term can be manageable. The longer this trend goes on, the less cash there is in the business and the more likely debts can build up. 

When debts start to become unmanageable it’s time to seek professional advice. Addressing the problem as soon as possible means you’re more likely to have several options to resolve it. As debts mount up and the situation becomes more critical, the options become more about business survival.

At HJS Recovery we’ve helped hundreds of businesses address debt problems, and restructure their business to get back on track. Call 0808 1644 222 to talk with our of our advisers today – all conversations are confidential. Alternatively contact us here and we’ll arrange a time to speak with you.


Leave Feedback Here

Enter Your Name Here

Enter Your Email Address Here


Your Comment Here



Contact Us Now
Learn more about how HJS Recovery can benefit your business

Through the years our team of experts have helped hundreds of UK companies buckling under financial pressure find their way back to sustainable growth. Whether you need advice on dealing with creditors, repaying business debt, setting up a payment schedule with HMRC or any other pressing issue, we’re the company to call. We’ll guide you every step of the way through the process of restructuring, refocusing and recovering.

HJS Recovery has nine offices at strategic locations around the country. We’re never far away and no matter where you are, we’re here for you 24 hours a day, 7 days a week. Give us a call and speak to one of our highly trained and discreet team members. They understand that each company’s circumstances have unique characteristics and as such are expert listeners. Give us a call today and set yourself and your company back on the path to a more sustainable, profitable future.

0808 1644 222
Get Started - Now