Business minister Michael Fallon has threatened to “name and shame” FTSE 100 and FtSE 250 companies who undertake shady settlement practices towards their smaller suppliers.
“Late payment causes real cash flow problems for entrepreneurs. It stops them from growing their business – we need to change the culture,” said Mr Fallon who has championed the Prompt Payment Code scheme. The code aims to assist small suppliers to get paid promptly for goods and services provided to larger companies.
Rather disturbingly, so far only 27 FTSE 100 companies and 5 FTSE 250 companies have signed up to the code.