PETERBOROUGH businesses are being urged to support one another in an unconventional new campaign for the city. #PayFair aims to reduce the number of city businesses that close each year due to cashflow problems, by asking firms to commit to paying on time.
The idea seeks to help the city build on its growing business success. Peterborough’s business community has continued to expand over the last five years, and in 2014 the number of businesses within the city reached 6,900, up 300 on the previous year and included the launch of 990 new companies (ONS).
In stark contrast to that growth, is the fact that 620 Peterborough businesses closed their doors that year. With 20 per cent of corporate insolvencies today caused by late payments, many local business closures are avoidable if customers simply pay their bills on time.
The #PayFair campaign is the brainchild of Maurice Power, Managing Director of Peterborough business Ferguson Financial Solicitors. He said: “One in seven businesses in the East of England have invoices that are more than 30 days overdue – that’s almost a thousand businesses around the city. Peterborough is a great place to build a company, but the fact that 600 are forced to close every year is very sad… and unnecessary.
“We advise local clients on how best to handle late payments and it’s shocking to see how prevalent this is in the city. We’re calling for a culture change in 2016. If we want business to really thrive in Peterborough, everyone needs to pay their suppliers fairly and encourage their customers to do the same.
“If we can make #PayFair a success, businesses in the city will prosper and there’ll be more work for everyone. I urge every Peterborough business to get involved.”
Maurice is calling for businesses across the city to sign up via the #PayFair website, www.payfairpbo.com. By adding their name to the list of supporting companies, businesses are backing the campaign’s three main commitments:
· to pay suppliers’ invoices within the agreed payment terms
· That 90 day payment terms are excessive and to negotiate for fairer ones from suppliers
· to chase debts and respect others that do
· To encourage clients, suppliers and contacts to #PayFair
In return for signing up, companies receive a supporters’ pack with debt advice and other useful information, occasional updates and an invitation to a networking event later in the year.
Maurice continued: “I’ve seen too many businesses close because of late payment and it’s a problem that’s so simple to avoid.
“Small businesses don’t have the time or expertise to chase their debts, which is why they’re so often exploited. We want Peterborough to lead the charge for Britain’s SMEs and #PayFair!”