Cashflow is vital to limited company contractors
, but it seems many are struggling to get paid on time.
A survey carried out by the British Chambers of Commerce shows that 94 per cent of firms have been paid late.
One in four report that over 40 per cent of their payments were received late, while 34 per cent of firms stated that larger businesses were more likely than smaller businesses to pay late
To combat the problem, the BCC wants to introduce a kitemark scheme to promote prompt payments.
It also wants to see businesses encouraged to use preferred payment methods, the introduction of electronic invoicing across the public sector and the creation of a British Business Bank to improve access to finance.
Director general John Longworth says: "Measures such as a kitemark for prompt payers, alongside moves to encourage local government to use e-invoicing, could mean fewer businesses struggling with cashflow problems."