Isme: Prompt pay legislation failing

Less than 3% of small firms are charging their larger clients interest on overdue payments for fear of losing their custom.

The figure — included in the latest quarterly SME Credit Watch survey from industry representative, Isme — proves that the prompt payments legislation is failing, the organisation claims.

Commenting on the survey — which covers the final three months of 2013 and is formally published today — Isme chief executive Mark Fielding welcomed the marginal improvement on payment times, albeit only from 63 days in the third quarter to 62 days in the three months to the end of December.