New government policy means businesses should be focusing now improving their payment practices
For businesses large and small, being paid on time matters. Reliable cashflow allows companies in all sectors to plan effectively, pay staff and invest in the future. Paying quickly and fairly is at the heart of good supply chain relationships, too, building trust between businesses. For the CBI, it is not just behaving the right way – it makes good business sense – as we outlined in a joint article with the FSB recently.
Read the CBI and FSB’s recent Red Box article on prompt payments
But late payment can still be an issue for too many companies. To tackle this, government has been stepping up its scrutiny of company payment practices through a range of new policy.
In April 2017, the Payment Practices and Performance Reporting (PPPR) regulation came into law, requiring businesses meeting two of the qualifying criteria (250+ staff, £36m+ turnover, £18m+ assets) to report data on their payment performance
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