Hauliers and other suppliers will be able to check how promptly businesses pay their suppliers if new government rules announced today come into force.
The government proposals will ensure that firms report quarterly on average payment times and the proportion of invoices paid late. Length of payment terms, such as within 30 days, 60 days or 120 days, will also be comparable.
Directors of large companies will be responsible for making public the data, with potential fines to those who fail to do so.
The Road Haulage Association (RHA), which has long campaigned for improved payment practices by large businesses, has welcomed the proposals. Director of policy Jack Semple says the situation of delayed payments has been getting worse, and that large companies are “strengthening their own balance sheets with what’s rightfully the supplier’s money”.
A consultation on the proposals will run until 2 February.
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