Late payment continues to tighten its grip on small business, with large firms still hesitant to improve on past behaviour. Since the collapse of Carillion, the construction industry has received the most attention, with its payment procedures and treatment of suppliers heavily scrutinised.
New figures released by construction organisation Build UK have exposed the maltreatment and supply chain bullying, committed by some of the country’s most prestigious construction firms. Interserve and Robert McAlpine are just two of the firms who saw their payment periods published and condemned by the public.
The instigator of events, Build UK, had its own conduct scrutinised recently when none of its suppliers were paying their invoices on time. The resulting scrutiny left other firms vulnerable, with Interserve now under fire for failing to meet agreed payments in 83 percent of cases. It was Engie and the Murphy Group who came up on top, however, with an average waiting time of 61 and 66 days respectively.
Prompt payment is an important business mantra and one which the Credit Protection Association encourages its Members to live by. Paying customers and suppliers on time is fundamental to the successful running of a business, but it is not always easy. The business community is governed by a supply chain, with every late and delayed payment sending ripples throughout.