Business insurance holders should do their bit to ensure prompt payments, the government has claimed.
Trade, investment and small business minister Lord Davies called on firms and suppliers to produce better invoices, use customer relationship management and chase payments to make it more likely they will receive timely settlements.
Lord Davies commented: "Government is playing its part - but every part of the supply chain must help ensure prompt payment."
Stressing the impact of late payments on business insurance holders, the minister claimed that they have cause companies to pay around £180 million a year on interest.
In addition, he said that larger business insurance holders should sign up to the government's Prompt Payment Code, which reassures smaller small companies and suppliers that they will settle their bills quickly.
Earlier this month, the Forum of Private Business said the problems of 'phoenix' companies, or firms which cease trading without paying suppliers only to start up again under another name, should be investigated by the Office of Fair Trading.
