The Forum of Private Business is urging suppliers to anonymously name and shame late-paying companies.
According to the organisation, many suppliers fear speaking out individually could cost them business. However, the Forum's 'Late Payment Hall of Shame' provides a way for them to identify late payers while protecting their identities.

The call follows the latest Business, Enterprise and Skills Committee hearing scrutinising the Draft Groceries Code Adjudicator Bill, which has been drawn up to establish a supermarket ombudsman to protect suppliers.

The Forum says it is concerned this new body will lack any real teeth, and believes a climate of fear still surrounds identifying large retailers who routinely squeeze their suppliers.

Several companies have been exposed by the organisation over the past few years. In 2009, Argos entered the Hall of Shame for a second time after doubling its payment terms from 30 to 60 days. In addition, says the FPB, the retailer deducts a 4% 'settlement discount' from invoices it pays within that time.

The Forum's head of campaigns Jane Bennett said: "Late payment destroys companies yet it is often seen as normal practice by many big supermarkets and other companies, which believe it is acceptable to create lines of credit at the expense of their smaller suppliers. We certainly do not.

"Previous initiatives to address late payment have failed. We are committed to helping small firms and the economy as a whole by building a momentum for change, and that means shedding light on the epidemic of late payment in the UK."