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The typical business start-up is suffering because larger firms are failing to make payments on time, according to a new study.
A recent survey by the Forum of Private Business found that almost 75 per cent of small firms are experiencing cash flow difficulties because they are awaiting payments from larger companies.
Matt Hardman, campaigns manager at the FPB, emphasised: "Our survey adds to a growing body of evidence that smaller business suppliers are often bullied and treated unfairly by big business.
"While most of the public sector seems to have got the message on late payment, big business is dragging its feet."
He continued: "The OFT needs to find a way of addressing this problem."
The FPB represents around 25,000 smaller firms across the UK.
The organisation campaigned for several years before finally winning changes to company legislation which allow firms to charge interest on late payments.
Earlier this year, the FPB sent a letter to the new Chancellor the Exchequer, Alistair Darling, urging him to make tackling late payment a priority.
Edward Handley, of Big Wheelers Ltd, a training company in Reading, recently told Business Credit Management UK: "Big public sector organisations are pretty good these days, but the big companies can be a nightmare, with complicated purchasing systems that are designed to create delays in paying."
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