The PCG says this would avoid 'black-listing' of those small firms who ' are brave enough to speak up when big businesses do not pay within a reasonable time frame'.
The PCG welcomed the announcement of plans to allow small businesses to name and shame late-paying customers, acknowledging the huge problems that SMEs face on a regular basis. The organisation said it was overdue recognition of what is a key issue for freelancers, given their size.
It called on the Government to consider providing SMEs with a platform to report anonymously those big businesses who fail to pay on time, arguing that anonymity would protect them from the potentially damaging effects of openly criticising important clients.
Simon McVicker, PCG Director of Policy and Public Affairs said: “Any move that helps to tackle the issue of late payment is welcome - but the Government need to think carefully about how this new plan will work.
“Freelancers are a crucial component of the small business sector and being seen to complain about customers could have negative consequences. Anything that puts the prospect of future contracts and recommendations in jeopardy would be disastrous for independent professionals who live or die by the strength of their client relationships.
“The last thing we want to see is blacklisting of those microbusinesses who are brave enough to speak up when big businesses do not pay within a reasonable time frame.
“We propose that the Government considers a scheme allowing freelancers - and all small businesses for that matter - to report big businesses that do not pay within a reasonable time frame anonymously and without risk of repercussion.
“This would protect small businesses from further harm while also offering a real solution to the problem of late payments.”
If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'.
Susie Hughes © Shout99 2013