Home   Bury St Edmunds   News   Article

Subscribe Now

Graphic and web design business in Bury St Edmunds wins late payment claim with help from Small Business Commissioner



More news, no ads

LEARN MORE


The owner of a small business based in Bury St Edmunds has hit out at large firms which do not make prompt payments after taking his case to the Small Business Commissioner's office.

Andrew Osman from Magellan Designs battled with Jordans & Ryvita to receive payment for two invoices and has successfully received an apology and payment after the commissioner's office intervened.

Mr Osman had to pay his suppliers out of his own pocket as he attempted to get his invoices paid.

One was five months late and the other seven months amounting to a total of around £5,000.

Andrew Osman of Magellan Design Ltd (8180216)
Andrew Osman of Magellan Design Ltd (8180216)

He said: "It's a way of delaying payments. This is a company that will not pay invoices and it happens in many organisations.

"I gave them the opportunity and explained what was wrong. This can be devastating to small businesses."

Mr Osman also invoiced the company for late payment interest and, after intervention by the SBC, has had the invoices paid in full plus £1,400 late payment interest with an apology.

He said: "If small businesses were paid on time it would boost the economy by £2.5 billion. When ou look at the bigger picture this is huge.

"Delaying payment meant we were in a serious cash flow situation and I used my own money to pay the printers and personally made sure our other suppliers were paid on time. We are a stronger company now and have made changes to the way we operate the business. It was dreadful. "

Paul Uppal, the Small Business Commissioner, said: "I am pleased that J & R have positively engaged with my office throughout the investigation. Their enthusiasm to tackle the issue of late payments gives me hope that we can make a real difference and change to poor payment culture that causes small business owners to lay awake at night worrying about when they will get paid."

Jordans and Ryvita commented: "As a business we manage over 22,000 payments annually. Unfortunately in this instance an invoice was not processed correctly as a result of human error. We deeply regret this occurred and have apologised to Magellan Design. We have also worked with the office of the Small Business Commissioner to ensure the needs of small businesses are better addressed within our procedures."

In the last 12 months the Small Business Commissioner, has released £3.5m in late payments