Michael Fabricant is calling on local firms to contact him, if a national Government department is slow in paying its bills. “Having been in business, I know that in these tough times cash flow is all important. A profitable business can still go under if it is not paid promptly.” says Michael.
"Government departments are now paying 80% of invoices within five days. That is quick! The Department for Business, Innovation & Skills (BIS) averaged 95% during 2011. And they are committed to improving performance across the whole of Government. But if any local firm is finding a national Government department routinely slow at paying their bills, they should write to me. And if the firm is not based in the Lichfield constituency, they should write to their MP too. We can then take it up directly with the Government departments concerned.
"The Government is also encouraging all businesses to adopt best practice, not least through the Prompt Payment Code. They are also working with businesses to ensure small businesses have the information and advice they need to minimise the problem.
"The Prompt Payment Code is a great benchmark. Around 1,000 registered businesses are working to it but the Government want this figure to rise. For more information go to: http://www.promptpaymentcode.org.uk
"In addition, BIS have worked with the Institute of Credit Management to promote a range of practical business tools online, for all companies to use. Local businesses should try http://www.creditmanagement.org.uk/
"Also, as part of http://www.mentorsme.co.uk 1,000 specially trained financial mentors are being provided. And finally, the ACCA have issued a really useful guide on late payment. The guide is available on bis.gov.uk."