Overview

• The draft legislation would mandate payment of valid supplier invoices within 30 days by default.
• Maximum payment terms would be capped at 60 days initially and reduced to 45 days after an introductory period.
• The Small Business Commissioner would gain authority to levy multimillion-pound penalties and verify compliance through unannounced spot checks.
• Audit committees in large firms would be legally required to review supplier payment practices at board level.
• A £4 billion SME support package includes 69,000 start-up loans and expanded British Business Bank guarantees to bolster cash flow.