Late payments – Government call for evidence
We are gathering views from members on late payments to feed into the Department for Business' Call for Evidence currently taking place. The deadline for submissions is: 11.45pm on Thursday 29 November 2018.
We have some good statistical evidence on the extent of late payment and long term payment terms practices in our industry. However the Government is also looking for the following:
- How does late payment affect your business?
- Do you do any research before entering into a contracting regarding the customer's track record?
- Do you take any action if paid late and if so, what?
- Do you feel confident to negotiate and challenge payment terms/late payments?
- Do you have any views on the culture of late payment (the Government do recognise that there is 'an issue of unequal bargaining power' between large and small businesses and this causes suppliers not to dispute for fear of losing business) - Are you aware of the finance options available to help manage long payment periods?
The Government has put forward some proposals (falling short of introducing maximum payments terms on statutory basis). Please let us know if you have any views on the following:
- Encouraging use of digital invoicing systems, especially in small businesses - Having an individual on all company boards who is responsible for the company's payment performance - How trade bodies can foster a responsible payment culture and how Government can support them to do so - The enhancement of payment practices reporting - Steps that could be taken to encourage more businesses to 'call out' breaches of the Prompt Payment Code - Other measures that may be effective in addressing lengthy payment terms
To submit your responses to the the Department for Business please click here.
If you have any thoughts on any of these areas, please email Carys Davis, BPIF Public Affairs Adviser at [email protected]