The directive will hit small companies hard, as the majority tend to prefer to stick to more traditional paper-based methods.

A spokesman for the Federation of Small Businesses told the Financial Times that the body would prefer the EU to force large suppliers pay their bills on time, rather than introduce the rules.

'A lot of businesses in the UK don't know whether they will be around for more than three years, so they prefer traditional systems that provide written proof of payment,' the spokesman said.

'There is also still a lack of confidence in electronic systems given the fears of hacking, viruses and spam.'

For more information on the directive, read the proposals here.