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30 day payment terms should be a legal requirement

Comment 8th July 2010

I run a small business and have constant problems getting paid. I deal with public companies, private companies and research institutes.  I always put payment terms of 30 days on my invoices, but rarely get paid in 30 days. Some companies' terms and conditions specify 4 – 6 weeks, and some large companies force suppliers to wait 90 days!  The law should be changed so that if a company specifies 30 days on their paperwork, any delay will automatically add substantial interest to the total as a penalty.

Why does this matter?

Many small businesses close down due to the late payment policy of large organisations.  It was only when I ran a company myself that I realised how a company can fold with a full order book due to lack of funds.  This needs to be changed as soon as possible.

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