Tuesday 8 May 2012
A leading UK producer of bathroom products has been entered in to the Forum of Private Business' (FPB) late payment ‘Hall of Shame'.
The Bristan Group Ltd has written to suppliers to inform them it has increased its payment times from 30 to 60 days.
In addition, the firm has introduced an accumulation period for invoicing which can add up to another 30 days to the process.
So some suppliers could be left waiting almost three months to receive payment.
The Bristan Group Ltd said its US parent company, Masco, is standardising payment terms across its entire enterprise.
But the FPB has added the firm to its Hall of Shame nonetheless, where it joins other 'late payers' including Dell, Argos, United Biscuits and Carlsberg.
"Small businesses continue to suffer from the blight of late payment, which devastates cash flow and forces firms into administration," said senior policy adviser Phil McCabe.
"Companies like Bristan have a responsibility to pay promptly - failure to do so can mean the whole supply chain seizes up and threatens the viability of smaller firms who rely on steady cash flow."
He said that all too often when small suppliers receive a letter like Bristan have sent out, they have no choice but to agree to the new terms however punishing they are, and remain silent.
"There is little room for bargaining for the fear they will lose business. That fear is even more daunting in the current economic climate," Mr Orford added.
Posted by Dan Smith