A group of FTSE 250 companies will tomorrow meet with small suppliers in a bid to resolve the burning issue of late payment and alleged mistreatment by some large buyers of products and services.

The meeting will be held at the Prime Minister’s official residence at Number 10 Downing Street on Tuesday and is part of a response to a government consultation on payment practices.

Late payment is a perennial problem for businesses of all sizes, but it impacts disproportionally on growing firms with tight margins and fewer resources to chase debts.

The CBI, a British lobby group representing large and small organisations, says businesses should publish their payment performance online and in annual reports.

Annual reports are sent to Companies House, meaning it could display the data and help suppliers make comparisons between different payers.

The CBI’s director general, John Cridland, said: “We want to see companies publishing simple information online and in their annual reports about their payment practices because it shines a light on this important area and makes good business sense from an investor and supplier perspective.

“Reporting payment information will help show that larger companies are keeping their word by giving suppliers greater opportunity to challenge unfair terms.

“But we also need to make sure we steer clear of creating accidental perverse incentives that might encourage companies to extend their payment terms to reduce the proportion of those paid late.”