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New government guidance on late payment is 'welcome', says R3

In response to the publication of new guidance on late payment reporting for large businesses, published by the Department for Business, Energy, and Industrial Strategy, Andrew Tate, President of R3 said:

"We welcome the new guidance, which we hope will encourage better practice in making prompt payments to suppliers, safeguarding the cashflows and the survival of SMEs."

"Our research in 2016 found that late payment for goods or services was a primary or major cause in 23% of insolvencies, a proportion more or less unchanged from 2014, showing this is an ongoing concern for too many SMEs. We hope the government's requirement that large companies report on their payment practices and performance will give much-needed transparency and confidence to smaller suppliers."

R3's 2016 survey on late payment and insolvency can be found here.

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.