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UK limits large firms' payment terms to 60 days for small suppliers, enforces 8% interest on late invoices, and imposes fines to boost small business cash flow.
The UK has introduced its strongest late payment reforms in over 25 years, capping payment terms at 60 days for large firms paying small suppliers, mandating 8% interest above the Bank of England base rate on overdue invoices, and imposing fines of millions on repeat offenders.
The Small Business Commissioner gains expanded powers to investigate disputes, enforce compliance, and require public reporting of payment failures.
A ban on withholding retention payments in construction aims to protect small firms from financial losses due to upstream insolvencies.
The changes, welcomed by business groups, are expected to reduce small business closures, improve cash flow, and save the economy £11 billion annually.
El Reino Unido limita los plazos de pago de las grandes empresas a 60 días para los pequeños proveedores, impone un interés del 8% sobre las facturas atrasadas e impone multas para impulsar el flujo de caja de las pequeñas empresas.