Poll: Majority of small firms afraid to penalise over late payments

The majority of small firms are unwilling to penalise people who are late paying them for fear of losing business in the current economic climate.

The Small Firms’ Association payments survey found that getting paid on time remains a significant problem for small businesses despite the introduction of legislation to allow small firms to charge interest penalties on accounts outstanding beyond 30 days.

The Director of the Small Firms Association (SFA), Patricia Callan said it is an ongoing problem hindering the whole sector.