Tuesday 23rd December, 2014

According to a new survey by the Institute of Directors (IoD), two thirds of SMEs are paid late, creating dangerous fractures and instability across the supply chain.

James Sproule, Chief Economist at the IoD said that it was "simply not acceptable for late payments to be standard practice"

The survey listened to 925 smaller and medium sized companies, and found that 615 were affected by late payments.

The Federation of Small Businesses is asking the Government to tighten the policy around the prompt payment code, saying more clarity is needed and to name and shame those who fail to adhere.

Late payments have been capturing headlines recently, with Newsnight highlighting the issues between suppliers and Premier Foods and 2 Sisters.