THE leaders of Yeovil traders has welcomed new legislation which makes it easier for businesses to charge for late payments.

Businesses are now able to charge £40 compensation for late payment of a bill of under £1,000, rising to a maximum of £100 for each bill exceeding £10,000.

David Mills, President of Yeovil Chamber of Trade, commented: "We fully support these measures as many of our smaller members rely on good cash flow and cannot afford to wait 41 days (the UK average for invoice settlement) or beyond for their cash.

"A recent study by the Credit Management Research Centre found that 32 per cent of the time, invoices are being deliberately withheld to delay payment. Some of the bizarre excuses they found for not paying included not being able to pay bills until the planets are aligned. That people feel able to use nonsensical excuses like this shows that something needs to be done."

In a Department of Trade and Industry press release, small business minister Nigel Griffiths said: "Cash flow problems and the time spent chasing debt prevent business owners from doing what they do best - running their business. This new legislation will ensure that the cash keeps flowing."

Detailed information about the new legislation is given in booklet which can be ordered on 0870 150 2500. The information can also be accessed at http://www.payontime.co.uk">www.payontime.co.uk