Time and time again, the government has spoken about how maintaining a good cash flow is one of the most important things a small business or recent company formation can do if they are to survive the recession. They even implemented a policy whereby they agreed to pay all of their suppliers with ten days.
However, as Companies Made Simple reported a couple of weeks ago, the government has failed to honour this commitment. Indeed, research conducted by the Federation of Small Businesses, revealed that not only is the government failed to adhere to its own payment Prompt Payment Charter, it is actually paying its suppliers late, if at all.
Therefore, if the government and public sector are gathering bad debt, it comes as little surprise that the small business and recent company formation sector now want to extend their business insurance policies to protect themselves against the implications of bad debt.
The poll found that over 50% of all small companies want to insure against bad debt, while over 20% have extended their insurance policies to include protecting them against the legal costs of suing a supplier.