Monday 19th January, 2015

In the latest tale of late payment woe, BBC News has reported that AB InBev (brewers of Boddingtons, Stella Artois and Budweiser) routinely pays suppliers four months after goods have been received. Business Minister, Matt Hancock called the practice "unacceptable", while one supplier has refused to trade with the company.

The small supplier based in Surrey, said that it could no longer afford to trade with AB InBev as staff needed to be paid, and they were having to pay VAT on income yet to be received. The company added that no other customer took so long to pay, and that banks would not provide finance.

The Federation of Small Business says that it wants a mandatory code which forces companies to display their maximum and average payment terms.

Mr Hancock said that legislation would be introduced later this year to name and shame those companies continuing to offer such extended payment terms.

Many organisations are worried that paying early, or on time will cost the business but in many cases, the reverse is true.

Register for our webinar on 26th February to discover how paying on time can save you money.