Small business gets debt recovery boost
The government is planning to give businesses the right to claim 'reasonable' debt recovery costs without having to go to court, Small Businesses minister Nigel Griffiths has told the Commons.
New measures will also enable ‘grossly unfair terms and conditions’ imposed by larger companies to be challenged and their future use prevented, Griffiths said in reply to a question from Wrexham MP Ian Lucas.
He said the changes would come into effect on 8 August at the same time as the late payment legislation becomes available for all businesses and organisations irrespective of size – three months ahead of schedule.
Griffiths said a report from the Credit Management Research centre at Leeds University showed a 7.5% drop in late payments reported by businesses included in the survey.