GlaxoSmithKline admits to late payments
Pharmaceutical giant GlaxoSmithKline has confessed to taking too long to pay hundreds of small suppliers – despite signing up to a ‘fast payments’ code nine years ago.
One small supplier said payments from GSK had typically taken 90 days to arrive.
GSK has now moved more than 600 suppliers to terms where payments arrive within 30 days. The remaining firms will be switched next year.
What is the code? – The Prompt payment code
1. Pay suppliers on time
Within the terms agreed at the outset of the contract
Without attempting to change payment terms retrospectively
Without changing practice on length of payment for smaller companies on unreasonable grounds
2. Give clear guidance to suppliers
By providing suppliers with clear and easily accessible guidance on payment procedures
By ensuring there is a system for dealing with complaints and disputes which is communicated to suppliers
By advising them promptly if there is any reason why an invoice will not be paid to the agreed terms
3. Encourage good practice
By requesting that lead suppliers encourage adoption of the code throughout their own supply chains
Visit the website payontime.co.uk and become a supporter to show your support for late payment legislation.
What to do about late payment
The Credit Protection Association cares passionately about late payment.
We have helping business get paid for over 100 years. CPA prompt punctual payment!
If this is is an issue that affects you, contact us to see how we can help.
The problem of late payment has been debated, dismissed and argued over for far too long. As the story above shows, the prompt payment code is not the answer. Big business pays it merely lip service.
Various initiatives such as the Prompt Payment Code have been ultimately ineffective and proved that merely asking businesses to promise to pay on time has not a successful tactic.
Sadly stronger tactics are called for.
At the Credit Protection Association, our debt recovery services chase down unpaid invoices and residual debt, freeing up cash flow that our members utilise for expansion projects or to build up their savings.
Furthermore, our credit management products protect our members from further harm, with our credit checks and company directories purging business finances from harmful figures.
At CPA, we also fight to get our members rightly compensated in accordance with the Late Payment of Commercial Debts (Interest) Act 1998, unlocking hidden cash and potential in our members and their prospects.
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For help or advice on credit management, entirely without obligation.
Call us today
0330 053 9263
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
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