The Better Payment Practice Group business survey reveals that the tide is turning in changing the payment culture

The Better Payment Practice Group has released the results of its detailed survey into the issue of late payment in the UK business community. The results indicate that there are significant strides being made to change the payment culture by businesses.

The survey, conducted by BPPG member, the Credit Management Research Centre at the University of Leeds, undertook in-depth interviews with 360 businesses spanning all business sectors and company size.

Of the businesses surveyed:

• 38% believe late payment does not present a serious problem for their business.
• 70% send invoices immediately or within 3 days after dispatch of goods/services.
• 92% are aware of the EC Directive on late payment.
• 52% have a written credit policy, up from 35% a decade ago.
• 38% will withhold supplies from slow paying customers.
• 77% check creditworthiness of customers before granting credit.

Richard Wilson, Chairman of the BPPG and Head of Business Policy at the Institute of Directors, commented: “Our survey reveals some important indicators of progress in changing the payment culture in the UK. Businesses are proactively taking steps to minimize late payment, understand their rights and are confidently using the tools at their disposal to ensure that they are paid on time.”

Richard added
“If every business in the UK undertook the basic steps of checking the creditworthiness of potential customers before granting credit, issuing a written credit policy and implementing confident and timely collection procedures we would see a wholesale change to the payment culture. We urge all businesses to take up this challenge."

Further details of the survey, together with the rest of the research undertaken by the BPPG, can be found in this web site.

You can keep up to date with the Better Payment Practice Campaign by sending us an email