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Micro-businesses haven’t much faith in efforts to swap UK payment culture, says FreeAgent Magazine

New research from cloud accounting software provider FreeAgent demonstrates just two businesses in a hundred believe the Government’s new Organization Commissioner can achieve something to create a serious get a new UK’s overdue culture.

With Britain boasting 5m?micro-businesses, this equals just 100,000 firms believing an important change can be built from the government with the issue.

The scale within the dilemma is clear, reported by FreeAgent, as only element of all invoices submitted in britain over the past year were paid in regular basis.

Instead, micro-business owners would love to see additional stringent penalties established for people who don’t pay invoices. 70% of owners polled said they were going to be able to to secure compensation from late-paying clients, while 59% said selecting to just go to a code of conduct being implemented and honored. However, just 29% believe naming and shaming of late-payment offenders will probably be beneficial.

Previous research revealed by FreeAgent trapped on tape also stated 57% of economic owners did not know there’s transforming into a Home business Commissioner being appointed.

Ed Molyneux, CEO and co-founder of FreeAgent, said:?”It’s good news the us government has finally appointed your small business Commissioner, with all the specific remit of addressing the overdue problem faced by micro-businesses. However, the reality is gonna be that Mr Uppal would surely have limited opportunity to punish companies who routinely pay late, and also just naming and shaming them.

“Micro-businesses together with their owners are acutely affected by late payments. Unlike bigger companies who could often wait being paid, micro businesses have to get paid promptly to keep their business from the black. We will need to stop at complete cultural shift when it comes to paying invoices to ensure that these kinds of small business owners will not be put at an increased risk.”

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