The government is being urged to reconsider a decision to cut funding for the Better Payment Practice Group.
Credit-checking firm e-bcm said the dissolution of the group would result in small businesses ‘being cut adrift in the fight against late payments and bad debt’.
The service currently provides advice and guidance to small firms on avoiding late payments and bad debts.
However, the Department for Business, Enterprise and Regulatory Reform (DBERR) recently announced funding through the Small Business Service for the Better Payment Practice Group would be cut.
The cut sends out completely the wrong message to the market, according to e-bcm which is calling on the DBERR to reverse its decision.
Dennis Scott, Commercial Director of e-bcm: said: “It is small businesses that suffer most as a result of bad and late payment and the withdrawal of government support sends out completely the wrong message – especially at a time when credit is getting tighter and more firms are likely to be put out of business due to cashflow problems.
“Effectively, the government is cutting small businesses adrift and leaving them to their own devices – we think that, in the end, that will end up costing the taxpayer money, in lower company profits and lost tax revenues.”
Research from Leeds University Business School found that the UK’s small businesses were writing off an average of £14,000 worth of debt each year.
© Crimson Business Ltd. 2007
