The Government is giving all businesses in the FTSE 350 one month to sign up to new rules obliging them to bills on time. Whilst this is a step in the right direction there is still nothing to stop companies legally setting out their payment terms. The Prompt Payment Code is 5 years old this year and I do not believe this code has materially changed the way that many companies pay their bills.
All businesses supplying larger companies should ensure that they have sufficient working capital in place to deal with the extended terms that are often imposed on them by large companies. Invoice finance remains the favored source of funds to make sure that the there is sufficient working capital to keep businesses running.
I shall keep an eye on whether this initiative is working.
All businesses supplying larger companies should ensure that they have sufficient working capital in place to deal with the extended terms that are often imposed on them by large companies. Invoice finance remains the favored source of funds to make sure that the there is sufficient working capital to keep businesses running.
I shall keep an eye on whether this initiative is working.
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