Boycott Boots

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The Federation of Small Businesses (FSB) has stated that it has evidence that large organisations are making small firms wait for more than 100 days before payment and that some are changing terms and conditions with little or no notice.

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Whilist this issue is not new it is now becoming a huge issue at a time when bank credit facilities are becoming more difficult to obtain.

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The large small business organisation points particularly to new payment terms introduced by Alliance Boots in April, under which supplier invoices are payable up to 105 days after issue. Highlighting Boots' new terms in March, the Forum for Private Business revealed waded in recently with the fact that the chemist chain also levies a 2.5% 'settlement fee' on invoices settled within this period.

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"Making small businesses wait 105 days for payment and charging them for the privilege of doing so is nothing short of outrageous," said John Wright the former trade unionist turned national chairman of the FSB.

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"At a time when small businesses are finding it difficult to deal with a slowing economy and rising costs, it is shocking that large companies think it is acceptable to use them as an unofficial source of credit." Mr Wright added.

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Well inded it is - perhaps a boycott of Boots by small business people would be in order? Separate research in April by the bank payments clearing service Bacs suggested that small and medium enterprises (SMEs) are owed more than £18 billion in outstanding payments, cleary the likes of Boots are not helping!

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