March 28 2015
Royal Assent for the Small Business, Enterprise and Employment Act was given on 26th March 2015.
The topics covered by the Act are highly diverse, including cheque clearance times, zero hours contracts, insolvency rules, disqualification of directors, and the relationship between brewing companies and tied landlords to name a few. According to the Department of Business, Innovation and Skills (BIS) the Act is a set of laws specifically to help small business.
For businesses struggling to collect late payments one section of the Act aims to level the playing field between large companies and the SMEs that supply them. The Act gives powers to the government to require large businesses to publish their payment policies and practices and their performance relative to these policies.
“The Government clearly hopes that by shining a light onto the payment performance of large businesses, it can shame them into behaving in an equitable way towards their much smaller suppliers,” said Samantha White, CEO of My Credit Controllers. “My Credit Controllers welcomes the new powers given in the Act and calls on the government to use them to highlight those that abuse their scale to borrow money cheaply from the SMEs that supply them.”
How we can Help: