Prompt payment policy

Small Businesses Hit by Late Paying Local Councils

Councils fail to follow prompt payment policy, with some small business working with contractors waiting over 70 days for payment New research has revealed local councils are falling behind the government’s guidelines for prompt payment of invoices. From July 2010, government departments were ordered to pay 80% of invoices within five days, however the research shows that suppliers on average wait 17.3 days to receive payment from local councils. The report, issued by Asset Based Finance Association (ABFA), revealed that some local companies even fail to pay within the 30-day period instructed by the Late Payment of Commercial Debt Act. Small and mid-sized businesses working on sub-contracted projects are the worse effected as they have to wait on the main contractor and the local council.... »