April 19 2019
A new report by Lloyds Bank, published on the website of the Small Business Commissioner reveals the challenge that the Commissioner faces to encourage large companies to offer fair payment terms to suppliers and keep within them.
Legislation was introduced in April 2017 that requires the UK's largest companies and Limited Liability Partnerships (LLPs) to report twice a year on payment metrics, including the average time taken to pay supplier invoices. The banking group analysed public data from official payment reporting returns based on the annual reports of large businesses. Among the findings were:
The report also drew attention to the accuracy and promptness of reporting by companies. Many appear to have missed their statutory requirements to report, some groups of companies have submitted identical returns across the companies in the group while others have reported average payment terms lower than their standard payment terms.
Samanta White, CEO of My Credit Controllers commented:
“ This report backs up our own analysis which showed that companies that were members of a prompt payment code, underperformed companies that were not members. It also highlights the casual attitude of some large companies to providing accurate and timely returns reporting their payment practices. There is still a long way to go to address late payment culture in the UK. “
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