Getting to grips with extended payment terms

The secretary of State, Gregg Clark has recently appointed Paul Uppal as the new Small Business Commissioner. Expected to be operational by the end of 2017, the Birmingham politician’s independent office will be given the mandate to support small businesses with their disputes with larger organisations. It is hoped the commission will begin to get a grip on extended payment terms being pushed onto smaller businesses, often creating a crippling cashflow situation.

Day to day, Quba Solutions sees big business implementing extended payment terms and even when these elapse, payment may still not be forthcoming. One of the key reasons recruitment companies turn to Quba Solutions is to alleviate the cashflow problems a small recruitment company can come across. However, the current payment practices make it difficult to move away from the security of finance once the business is established.

The appointment of Paul Uppal in the position of Small Business Commissioner is therefore welcome. Hopefully we will see a shift from big business throwing its weight around to the detriment of the UK’s 5.5 million small companies.