On 1 November 2002, the Late Payment Act will be extended to allow large businesses to claim interest from smaller businesses. The act, first launched 1 November 1998, currently gives small businesses the right to claim interest from large businesses on the late payment of debt.
Venture Finance PLC, which provides working capital for small and medium enterprises, today expresses concern at this amendment to the act. On this planned legislation Alison Small, business development director said:
"The act was originally launched in November 1998 to protect small businesses by giving them the right to claim interest from larger businesses. In practice small businesses have been reluctant to use this, as they lack the financial clout and the time to be able to enforce it. I agree that small businesses need financial protection, but this act fails to do that.
