Late payment 'serious issue' for small businesses

The Confederation of British Industry's (CBI) has said government plans to hand a £2,000 national insurance cut to businesses and begin consultations on cutting slow payment of invoices could help businesses experiencing cash flow difficulties.

Katja Hall, chief policy director, commented:

Late payment is a serious issue for all businesses but particularly for smaller firms, as cash flow is their life blood. Businesses already have a number of routes for recourse if they are paid late, but the reality is that few choose to act on late payment for fear of fall-out with their customers.

– Katja Hall, CBI chief policy director

Read: National insurance cuts will 'save businesses millions'

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PM's small business tax cut

Ministers are to launch plans to hand a £2,000 national insurance cut to businesses and begin consultations on cutting slow payment of invoices. David Cameron will mark the introduction of the National Insurance Contributions Bill.