A growing culture of late payment is holding back the UK’s economy and legislation should be introduced to replace the voluntary Prompt Payment Code, according to the P&A Receivables Service.

The call for legislation comes following a survey of 540 finance and credit professionals conducted by P&A Receivables found 70% had been paid late over the last year and more than half of those said payment was more than 15 days late. Laurie Beagle, divisional director of P&A Receivables, said: "It is quite clear that the voluntary Prompt Payment Code is not working and that we need legislation to make businesses pay their suppliers on time."

Of those quizzed by P&A Receivables, 57% had received requests from customers to change payment terms – with some demanding up to 120 days credit. Beagle, who chairs a number of international credit forums, says 30 days credit is the norm in around 80% of companies but major buyers in a wide range of sectors are telling their suppliers that they are now going to....Read more on this story HERE

Source: Credit Today