Monday 6th March, 2017
From next month, all big businesses will have to publicly report twice a year on their payment practices and performance, including the average time taken to pay supplier invoices.
A leading payment expert has refuted suggestions that new government financial reporting rules will increase the burden on big businesses, and says greater transparency will help improve customer/supplier relationships.
Speaking on the BBC’s You and Yours, Philip King, Chief Executive of the Chartered Institute of Credit Management (CICM), says that it’s data that all business should have to hand: “Most businesses will have this data in some form or another and should be monitoring how they are treating their supply chain anyway, because if they are not, then they’re not doing their job.”
He also said that given the publicity around late payment, there are not enough complaints being addressed to the CICM as administrators of the government’s Prompt Payment Code: “We only get three or four complaints a month on average, and it should be more than that as clearly there is plenty of noise around bad behaviour,” he explains.
Philip believes that taking a professional credit management approach from the outset can make all the difference: “Suppliers sometimes don’t appreciate the strength of their position,” he continues. “Setting payment terms from the outset, and adopting best practice credit management, can make all the difference in getting paid on time.”
To listen to Philip’s interview, please click here.