Late Payment News
Recently, Margot James, the minister of small business, wrote to signatories of the Prompt Payment Code to highlight progress in the issue for tackling later payment. As in any other business, for the flooring industry, it is of utmost importance to have clear outlines for that matter. London flooring specialists point out that appropriate improvements should be made in order to optimise the business flow. The minister’s letter covers subjects that concern improving the payment practices and suggested the following.
- Central Government departments published results which show that around 80% of invoices are paid within 5 days.
- Legislation that takes 30 days to be passed down the supply chain in all public sector projects.
- Some circumstances are viewed as ‘exceptional’ – in such cases the payment terms of more than 60 days are acceptable.
London flooring experts say the letter confirmed the new Duty to Report – it concerns the payment practices for large companies including London flooring ones. It will come into effect on 6th April 2017. Guidance will be published in the autumn – Build UK encourages members to voluntarily start reporting early and lead the way. London flooring professionals also say that to make further improvements and advance the payment practices within the industry, suitable business models will be presented – such appropriate models result in a flourishing industry and are an essential element of achieving it!
Inspired by www.contractflooringjournal.co.uk