Spain's largest companies are taking a long time to pay the bills that they owe to self-employed workers and small businesses that provide them with key operational services. Even though a Spanish payment default law requires companies to pay service providers within 60 days of receiving an invoice, many companies have gone over 124 days without doing so, which is strangling myriad unemployed self-employed and small businesses.
The situation highlights the power that larger companies hold over smaller ones and a lack of methods to enforce a law that is important but ineffective.
During a crisis, the most responsibility falls on the biggest companies, who should make sure to pay for the services they receive in a timely fashion in order to keep cash flowing and boost the economy.
Public administrations, which are also behind on paying service providers by nearly five months when the law only allows a one month delay, should follow the same advice and provide a better example of how to do business.