I’m finding that payments are being received more promptly this year than previously. Certainly that’s my own experience, and many clients tell me the same story. In part this is due to us being more proactive as suppliers in reminding customers of the agreed payment terms (do this BEFORE payment becomes overdue of course!).
I’ve registered for free with the Pay On Time service, and follow their good advice, printing their inoffensive logo on my invoices. This works as a discreet reminder that I’ll enforce rights and charge interest on late payment, without spoiling customer relationships. As part of that commitment, I’m also scrupulous in making sure I pay by own bills within terms- and usually set up an e-payment as soon as I accept an invoice so it’ll arrive in my customers’ account a little earlier than required.
One sector dragging heels seems to be in government contracting. I still regularly hear that sub-contractors are not being paid within terms by some prime contractors. And more often than not, subbies are so dependant upon this low-margin work that they daren’t rock the boat. Well. that’s understandable. So here’s another way of safely blowing the whistle and getting the government to intervene indirectly on your behalf through their “Mystery Shopper” programme. This is operated by the Cabinet Office, headed by Francis Maude, and is one of the ways government are policing the distribution of government contract payments. Tell him (he wants to know!) if you’re being paid late by a prime contractor, and he can arrange a Mystery Shopper exercise to be instigated- this often has the effect of getting prime contractors to honour their commitments. You can contact him by email at email@example.com