Healthcare businesses called on to keep payments healthy
- Research by Hiscox found that Healthcare businesses are owed an average of £15,467.89.
- The Commercial Payments Bill will cap payment terms at 60 days and strengthen action against persistent late payers.
- Fair, reliable payment practices can give suppliers greater confidence to plan, invest and keep delivering for customers.
Small businesses serving healthcare customers should not be left waiting unnecessarily for money they have earned, the Small Business Commissioner, Emma Jones, says, as businesses prepare for stronger commercial payment legislation.
Healthcare supply chains draw on a wide range of smaller firms, from specialist equipment and software providers to consultancies and facilities suppliers. When payments arrive late, those businesses can have less working capital available for staffing, stock, investment and day-to-day operations.
The UK Government has announced reforms through the Commercial Payments Bill, including a 60-day cap on payment terms for large firms paying smaller suppliers, mandatory statutory interest on late payments, and stronger powers for the Small Business Commissioner.
Emma Jones, Small Business Commissioner, said:
“Reliable payment is a basic part of a healthy supply chain. Small healthcare suppliers need certainty that completed work and delivered goods will be paid for within the terms agreed. Good payment practice builds trust between customers and suppliers and gives smaller firms the confidence to keep investing in their people and services. We encourage healthcare businesses to review their payment processes now, sign up to the Fair Payment Code where eligible and make prompt payment the norm.”
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