Payment performance to be mandatory

New proposals obliging large and listed companies to publish detailed information about their payment practices and performance have been unveiled by Business Minister Matthew Hancock [pictured].

The changes will provide robust information making it easier for small businesses to “compare the role models with the less reputable.” Specifically, the average payment time will be revealed; the proportion of invoices paid beyond terms; and the proportion of invoices paid within 30 days, over 30 days, over 60 days and over 120 days.

The new proposals show “how the government intends to use the prompt payment power” in the Small Business, Enterprise and Employment Bill which is currently going through Parliament. Reporting on a quarterly basis will be mandatory.