Better Payment Practice Group Welcomes Private Sector Payment Performance Tables

Positive Signs That The Payment Culture Is Changing, But There Is Still A Lot To Do

The Better Payment Practice Group (BPPG) today welcomed the publication of the Private Sector Payment Performance Tables by BPPG member, Federation of Small Businesses, and BPPG sponsor, Dun & Bradstreet.

The initiative is one of a package of measures the BPPG is supporting and conducting with the aim of improving the payment culture in the UK. Other initiatives timetabled by the BPPG for this year include:

• Nationwide programme of credit management seminars to help small businesses to reduce their incidence of late payment, commencing in the early Summer of this year.

• Campaign to encourage more organisations to sign up to the Better Payment Practice Code

• Support for the publication of the Local Government Payment Performance Tables due out in the Spring of 1999.

Richard Wilson, Business Policy Executive at the Institute of Directors and member of the BPPG said: "We encourage all businesses to make sure that the tables become an established reference point for checking payment times. Too few businesses gather the necessary information on potential customers before agreeing to supply products or services. Dun and Bradstreet and the Federation of Small Businesses are to be congratulated in bringing this information into the public domain."

Richard Wilson adds: "There are some positive signals that the payment culture is changing. Accountants Grant Thornton recently reported that average payment periods in the UK have reduced from 49 days in 1998 to 46 days in 1999*. Furthermore, trade credit insurer Euler Trade Indemnity recently reported that 17.9% of invoices were still awaiting payment thirty days after their due date in the fourth quarter of 1998 - a fall of 1.24% over the previous quarter**. In addition, the BPPG now have 900 signatories to the Better Payment Practice Code - a list that represents a 17% contribution to Gross Domestic Product. However, there is a lot of work to be done and the Better Payment Practice Group will continue to work hard to help improve the payment culture in the UK."

*Source: Grant Thornton '1999European Business Survey'. Copies can be obtained by telephoning Justin manche or Debbie Davey at Grant Thornton on 020 7728 2757 or 020 7728 2762 respectively. **Source: Euler Trade Indemnity 'Quarterly Financial Trends Survey, Oct/Dec 1998'. Copies can be obtained by telephoning Louise Read at Euler Trade Indemnity on 020 7860 2613.