A new plan has been put forward by the Business Secretary to introduce a service to resolve disputes between small companies and larger firms.
The new Enterprise Bill will also pave the way towards simplifying many of the regulations that govern burgeoning British businesses.
A recent survey by the Federation of Small Business (FSB) showed that 53% of small firms wanted the Government to reduce the amount of regulation needed to operate and make it easier for companies to do business, so the news may be welcomed by many.
Larger firms have also been lobbying for a reduction in red tape. In October 2013, a panel of the UK’s leading businesses said that the EU needed to amend 30 pieces of regulation to make it easier for British firms to operate.
Sajid Javid MP explained:
“As part of our long-term economic plan, we will sweep away burdensome red tape, get heavy-handed regulators off firms’ backs and create a Small Business Conciliation Service to help resolve disputes.”
Many of the disagreements involve smaller firms having to wait for too long to receive payment for their services. This issue causes many growing companies serious business cash flow problems. In fact, it can even lead to profitable firms going bankrupt.
It will take time for the regulations to be changed and implemented. In the meantime, if you are looking for capital to help you while awaiting invoice payments, please get in touch. At DJB, we offer a range of financing products that allow you to access funds quickly and at a reasonable rate.
Witten by Grace on