The late payments spotlight shines again on the United Kingdom, where the struggles continues for smaller firms to manage cash flow as larger firms hold back payments – or do not pay at all.
Even as lingering effects of the Carillion bankruptcy – where the construction industry juggernaut owes 800 million pounds to its supply chain – continue to be felt, there still remains the opportunity for the public sector to bring new standards to supplier payments.
That’s according to David Brown, who serves as CPO and co-founder of Previse. In a column on Open Access Government, he noted that the Carillion bankruptcy serves as a “canary in the coal mine” for firms that stretch payment terms and treat supplier payments as a “line of credit.” That sentiment echoes findings by members of Parliament. The Previse executive said that “the public sector can make a critical difference for small suppliers and set a new standard for the commercial world.”