Knowledge Centre

30 days is still 30 days too long for Britain’s suppliers in the wait to be paid

On Monday, the government announced it was strengthening the Prompt Payment Code (PPC), mandating that its signatories must pay suppliers within 30 days, rather than the previous 60.

While this is a welcome step in the right direction, there is still a long way to go in addressing the chronic issue of slow payments. A 30-day payment period is still 30 days too long for many small businesses struggling to stay afloat.

Let’s give small businesses the gift of a better year ahead this Christmas

Paul Christensen, CEO of Previse reflects on a tough 2020 and looks ahead to 2021.

2020 has been a hard year for British businesses, from the UK’s smallest suppliers to its most powerful retailers, none have been infallible to the impact of Coronavirus.

Arcadia’s collapse into administration highlights just how precarious the UK’s market is. The demise of Philip Green’s retail empire, and the fire sale of Debenhams, demonstrates that now is not the time to carry on business as usual – it is the time for renewal.

Previse wins major grant from Banking Competition Remedies

Previse has been awarded a £2.5m grant by the Banking Competition Remedies’ Capability and Innovation Fund.

The money, which will be used to fund further development of Previse’s industry leading instant payments solution, was won after a competitive application process that saw £20m dispersed to 6 companies, as part of the BCR’s mission to facilitate the commercialisation of financial technology relevant to SMEs.

A better future

For more than a decade large firms have been able to support their suppliers with a range of supply chain finance (SCF) options. Yet, uptake of these programmes by SME suppliers has remained limited

Asking the right questions on slow payments

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.

Time to turn to technology to fix the supplier payments problem

Following the announcement last week that company boards would be held directly responsible for payment practices, David Tyler, former Chairman of Sainsbury’s, and a member of Previse’s AdvisoryBoard, argues that if retailers do not make significant progress on improving supplier payments, they risk a harsher regulatory environment.

More of the same won’t speed up invoice payments

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.

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