To reduce the current owed to small businesses, new ruling comes into place today.
From today, large businesses are required to report on their payment practices. Large business is defined as a business that has met two of the three criteria over the past two years: a turnover of £36 million; a balance sheet total of £18 million; or 250 employees. These reports will be online and suppliers will be able to access them. Firms can then make better-informed decisions about who they do business with.
This aims to reduce the £26 billion owed in overdue payments to smaller or medium businesses. Late payments can break a new business, and hopefully this will soon be one thing new business owners don’t have to worry about!
[ Picture: me, with my money for the week, chillin’]