As the Government announces new enhanced powers for the Small Business Commissioner to tackle late payments, Paul Christensen, CEO and co-founder of Previse, points out that, unless these are coupled with reform to Prompt Payment reporting, they are unlikely to lead to practical changes for SME suppliers.
Posts by Paul Christensen
Many of the most progressive businesses are enthusiastic about putting an end to slow supplier payments. However, says Paul Christensen, CEO and co-founder of Previse, the archaic nature of current payment practices mean speeding up existing processes is a futile task. Firms need to completely rethink how their suppliers get paid to meet their ethical obligations.
Supply chain finance (SCF) is useful in many ways. One thing it is not, however, argues Paul Christensen, CEO and co-founder of Previse, is a solution to slow payment terms for smaller suppliers. Until we recognise this, suppliers and buyers alike will continue to pay the costs.
A few weeks ago, Sears, once America’s most iconic retailer, filed for Chapter 11 bankruptcy. The company, which survived two world wars and the Great Depression, suffered a 50% drop in sales since 2014.
We are very pleased to have been selected by the UK Department of International Trade to represent the UK fintech sector at Sibos 2018 which takes place next week.
The tools and technology now exist to solve the late payments problem. It’s time the public and private sectors collaborate to get suppliers paid instantly, setting a new standard for businesses all over the globe, argues Paul Christensen, co-founder and CEO of Previse.
…and the shortcomings of supply chain finance.
Previse co-founder and CEO, Paul Christensen, and Business Analyst, Shyamli Badgaiyan, explain why B2B commerce needs its ‘credit card moment’.
Small and medium-sized businesses have been forced to take out £31.5 billion in funding to maintain their cash flow due to slow payments – equivalent to the cost of hiring 640,000 new employees for a year2 – according to new research from Previse3, which creates value from invoice data using machine learning.
The collapse of Carillion means the tragedy of layoffs, not only for thousands of workers within the company, but also for many of its 30,000 small and medium-sized (SME) suppliers who are owed hundreds of millions of pounds. And, in turn, the suppliers of those suppliers who will, in turn, feel the terrible ripple effect of defaults on unpaid invoices.