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SMEs, sole traders and freelancers not confident in Prompt Payment Code

When it comes to small business owners - which includes sole traders, freelancers or contract workers - there's hardly any confidence whatsoever in the Prompt Payment Code.

A research study conducted by the Federation of Small businesses dicovered that when it came to its own members, only a paltry 21 per cent said they had confidence that the Prompt Payment Code would be able to takle the UK's poor payment culture, especially when it comes to large firms bulling much smaller ones.

Sole traders are understandably frustrated and annoyed over late payment, something the Prompt Payment Code was created in order to put an end to the practice. irms that sign up with the Code do so in order to provide themselves with a modicum of trustworthiness, pledging to pay their suppliers in full and on time; these companies have to meet certain requirements that are designed to prove they won't make late payments.

Despite the assurances the Prompt Payment Code is supposed to  provide SMEs, the FSB discovered that small businesses simply don't believe the Code will be enough to protect them from being victimised by bigger companies they do business for or work with. The FSB took its membership's wishes into account by stating that there needs to be an independent inquiry made into late payments and how there seems to be a so-called 'late payment culture' that has arisen in the UK. In fact, 60 per cent of the organisation's members said they would support such an inquiry.

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