Help for small businesses?

Sajid Javid, the new Business Secretary, has announced the creation of a new “small business conciliation service” which will aim to resolve payment disputes where that business is owed money by a large firm. Based upon an Australian model, the service will allow small companies who are owed money to attempt to resolve disputes without issuing a claim or a winding up petition. If both parties engage, this would be a key tool for small businesses who often wait months for payment, with disastrous implications for their cash flow. However with many large companies already flouting the 30 days set out in the Prompt Payment Code, it remains to be seen how effective the SBCS will be in practice.



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