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Department of Businesss - prompt payment workshop

Thursday 27th September, 2012

On Tuesday this week members of the UK e-Invoicing National Forum (www.ukeag.org.uk) participated in the Department of Business, Innovation and Skill’s prompt payment workshop chaired by the Minister for Business, Michael Fallon.

The workshop focused on how technology solutions can help micro, small and medium businesses and the positive impact on their business performance and credit management. The objective was to assess the impact of late payment on companies and the importance of ensuing they have the tools to become more resilient.

One of the major complaints from suppliers is getting paid on time. This was highlighted by a 2011 survey from the UK Federation of Small Businesses (FSB) which revealed that 73% of UK businesses were paid late in 2010/11 with the average supplier being owed £27,000 at any one time. Small and medium enterprises (SME), for whom cash flow is always a priority, are challenged with a lengthy cash conversion cycle due to extended payment terms, not including late payment. This burden places SMEs at financial risk. The Minister chaired a roundtable that discussed the importance of greater cash and credit management awareness amongst SME’s, the different obstacles when adopting technology solutions and how SME’s can interact with multiple customers with single solutions.

 

“The members of the UKeAG provide knowledge and experience across many areas of business and finance” commented Nigel Taylor, vice-chair and spokesperson for the UKeAG and Head of e-Invoicing Solutions at GXS Ltd., “the group is pleased to bring its extensive expertise in this matter, and to participate in a worthwhile government initiative.”

The UK e-Invoicing Advocacy Group (UKeAG) Recognised by the Department of Business, Innovation & Skills as the UK’s National Forum on E-Invoicing, the voluntary group was set up in 2010 to contribute UK expertise to the European Commission’s Multi-Stakeholder Forum on e-Invoicing.  It also promotes how UK public bodies and commercial enterprises of all sizes can save money and realise the benefits of replacing paper invoices with wholly electronic transactions.