Late payments
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• Hauliers will have an automatic right to late payments interest if the European Commission forces the UK Government to adopt its recommendations. More than Cl 7bn is currently owed to small companies, forcing many out of business.
A report by credit insurer Trade Indemnity last week suggested that overdue debts, as a proportion of small business turnover, have doubled in the past six months to 8.3%.
Small hauliers ..put late payment at the top of their list of problems but the Department of Trade & Industry has shied away from legislating against the offending companies.
The DTi's proposals, contained in its Competitiveness White Paper published last May, would simplify court procedures for debt recovery and develop a British Standard for prompt payment. This falls far short of the Commission's intention to give small firms an automatic right to interest at commercial rates on overdue debts. The EU warns that a legally binding directive would follow if member states ignore its recommendations.