By Daniel Hunter
It has been announced that The Department for Business, Innovation and Skills (BIS) is to outlaw contractual clauses used by bigger businesses to impede their SME suppliers from securing funding through invoice finance.
Small companies will be entitled to the right to raise funds by borrowing against unpaid invoices from big business customers from early next year.
The move marks the latest efforts to crack Britain’s late payments culture, in which big firms are found to delay paying bills, starving small suppliers of cash.
Small Business Minister Anna Soubry announced on Sunday (August 9) that so-called ‘bans on assignment’, which are often imposed on smaller supplier businesses by larger customer businesses, will be nullified from early 2016.