In brief: Small firms go easy on late payers

Nearly half of all small businesses are failing to claim interest rates on overdue bills, according to finance specialist, Alex Lawrie. Despite laws which came into effect last November, small firms are not charging late-paying large enterprises interest because they believe it would damage relations.

Keith Higley, managing director of Alex Lawrie, said: "Many of these businesses have been built on established strong trading relationships with their main customers."

In four years time all businesses will be granted the right to claim interest on outstanding bills.