BT leads the way in tackling late payments in telecoms
BT is leading the way on payment practices in the telecommunications sector becoming the largest information technology business to achieve a Fair Payment Code Award.
Through the UK Government backed Fair Payment Code, overseen by the Small Business Commissioner, BT has proven their commitment to suppliers throughout their supply chain by becoming a Silver Award holder: committed to paying 95% of invoices within 60 days, and at least 95% of invoices to small businesses within 30 days.
To be awarded by the Fair Payment Code businesses must provide not only evidence of their payment data but also their payment practices as they commit to the Code’s principles of being Clear, Fair and Collaborative with their suppliers.
Meeting the requirements of the Fair Payment Code is not easy. Their Silver award demonstrates BT’s leadership as a fair payer – meaning their suppliers know what to expect.
Healthy cash flow is critical for business survival and growth. Late payments and long payment times disrupt the cash flow cycle and can prevent a business from paying its bills, potentially resulting in business failure. The latest research shows that on average 38 businesses close a day due to late payments.
Johnny McQuoid, Managing Director – Group Business Services at BT, said:
“As the UK’s digital backbone, at BT, we’re working with suppliers in all sectors, of all sizes, and we know how important timely payment is for their cash flow. We’re very proud to hold the Fair Payment Code Silver award. As well as a mark of trust for our suppliers, it’s an important recognition of the hard work our teams across BT are doing to be clear, fair and collaborative with our supply chain.”
Liz Barclay, Small Business Commissioner said:
“We know that overdue payments and long contractual payment terms cost the UK economy. BT has stepped up and shown that with committed leadership businesses of all sizes can transform the way they pay. Embedding a culture of fair payment practices in your business is good for your own bottom line as well as for the economy, communities and wider society. Everyone benefits when suppliers are paid quickly and fairly.”