Small firms urged to 'name and shame'

A small business group is calling on all smaller suppliers to anonymously 'name and shame' late paying companies.

Many suppliers fear that speaking out individually will lead to unwelcome reprisals and cost them business, but the Forum of Private Business says its 'Late Payment Hall of Shame' provides a way for them to identify late payers yet still protect their identities.

The call follows the latest Business, Enterprise and Skills Committee hearing scrutinising the Draft Groceries Code Adjudicator Bill, which has been drawn up to establish a 'supermarket ombudsman' to protect suppliers.

Contrary to what some of the leading supermarkets have argued at an earlier hearing, the Forum believes there remains a climate of fear surrounding identifying large retailers, in particular, which routinely squeeze their suppliers.

The Forum's Head of Campaigns Jane Bennett, said: "We are urging all small suppliers who have suffered to come forward and provide us with evidence that they have been squeezed, and we can absolutely guarantee their anonymity.

"Late payment destroys companies yet it is often seen as normal practice by many big supermarkets and other companies, which believe it is acceptable to create lines of credit at the expense of their smaller suppliers. We certainly do not.

"Previous initiatives to address late payment have failed. We are committed to helping small firms and the economy as a whole by building a momentum for change, and that means shedding light on the epidemic of late payment in the UK.

"The problem is that, although we know this problem is rife, far too few business owners are willing to come forward, even though we ensure we will protect their identity. The message is that, by standing together as a collective, we can give small businesses a powerful voice they would not otherwise have."

According to the payment body Bacs more than £24 billion in outstanding invoice payments is owed to small firms.

The Forum is urging any business owners affected by this issue to get in touch. You can email them in confidence at publicaffairs@fpb.org.