Large companies are exploiting small businesses by delaying invoice payments and imposing new terms and settlement fees on owners, the Federation of Small Businesses (FSB) can reveal. The FSB has unearthed evidence that big organisations are unashamedly making smaller firms wait over 100 days before getting paid, often changing terms and conditions with little notice. In one example, the high street chain Alliance Boots wrote to its suppliers in January to inform them that, as of April 2008, bills would be paid up to 75 days from the end of the month of invoice with a 2.5% settlement fee. There is existing legislation which allows small business owners to charge interest on late payments, but many are reluctant to use this for fear of losing contracts with big businesses on which they are often reliant.

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25 July 2008
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