This week we learnt of a regional initiative in the north east that encourages prompt payment.
Thanks to this initiative, the money owed to small businesses in the north east has fallen 35 per cent.
The Pay Fair Campaign
The Pay Fair Campaign was launched in 2014 by Newcastle’s The Journal newspaper, and has encouraged a reduction in the sum due to SMEs from £41bn in 2014 to £26.8bn. The campaign came to an end after a year in October 2015, and these impressive figures have just recently been released.
Set up to address the problem of late payment, the campaign encourages companies to sign up to the Business Ethics Pledge – established by the North East Institute of Business Ethics (NIBE).
NIBE chairman Kevin Carrick said: “We’re delighted that together with The Journal, NIBE has raised awareness about the issue and we’ve seen a major reduction in late payments to the region’s small businesses.”
During the year-long campaign:
- Well-known names within North East business – from construction firms Owen Pugh and Hodgson Sayers to Northumbrian Water – have backed the initiative
- The Civil Engineering Contractors Association North East has increased its efforts to tackle the blight of late payment on the sector
- The Small Business Act, which includes measures for tackling late payment, has been enacted
- A petition on late payment launched bySage has been signed by more than 1,270 people
According to software company Sage, up to £55bn could be outstanding to SMEs across England due to late payers.
Nationally, the problem is being tackled with the introduction of the Small Business Act last year. This includes the proposal of a small business commissioner to arbitrate between SMEs and late payers to prevent court action.
As we reported last year, the appointment of a small business commissioner is yet to happen.
If you’re interested in improving your business cash flow through effective debt collection, but you don’t have the time or resources to focus on this task, we’d recommend that you contact Commercial Domestic Investigations for a free and impartial chat. We’ll explain what we can do to assist your business and improve your cash flow.
About Commercial Domestic Investigations
Commercial Domestic Investigations are regarded within the debt collection and credit control industry as one of the best credit management companies in the UK. Established in 1988 to support and service all sizes of companies in the field of Credit Management.
Commercial Domestic Investigations have recently featured in the press in The Guardian.
We now boast a national client base in excess of 30,000 companies. Commercial Domestic Investigations has grown by listening to clients’ requirements and adapting our services to meet all companies’ needs from Sole Traders, SMES, Ltd and Plus. Please contact us on 08444 159200 for more information.