Thought Leadership – Patricia Brassil Poole

The Importance of Fair Payment Practices

At Schroders Personal Wealth (SPW), we understand that fair payment practices are the backbone of a healthy business ecosystem. We are proud to have been accredited by the Good Business Charter for the past number of years and continue to fulfil all ten of their responsible business criteria, including prompt payment of suppliers. As a Wealth Manager and Financial Planning firm, we understand that by paying our suppliers on time, ensures that they can meet their own financial obligations, invest in growth, and continue to provide high-quality services – allowing us to serve the needs of our clients. This creates a positive cycle of reliability and trust, which is essential for long-term success.

Poor payment practices can create a ripple effect of negative consequences. Late payments can strain cash flow, hinder business operations, and even threaten the survival of small businesses. This not only affects the suppliers but also disrupts the entire supply chain, leading to delays and inefficiencies. While it’s important for companies to manage their cash flow, delaying payment of supplier invoices for too long can be a false economy, leading to increased administrative costs.

At SPW, Small and Medium Enterprises (SMEs) account for c11% of total payments to suppliers, by committing to timely payment of this group, we allow them to plan and operate in confidence when doing business with us. In 2024, SPW paid 99% of all invoices to SMEs within 30 days.

At SPW, we are committed to upholding the highest standards of payment practices. Some of the ways in which we achieve this are:

• Regular Training: All cost centre managers and buyers are educated on the importance of prompt payments and the company’s payment policies
• Publish Performance Metrics: We publish internally the monthly key performance indicators (KPIs) related to payment processing
• Regular Audits: We conduct regular audits of the payment process to identify and address any bottlenecks or inefficiencies. This ensures continuous improvement in the payment process.

At SPW we understand that by promoting fair payment practices, we contribute to a more resilient and sustainable economy. We encourage all businesses to prioritise timely payments and recognise the significant impact they have on the entire business community. Together, we can build a stronger, more trustworthy, and prosperous economic environment for everyone.

Written by Patricia Brassil Poole, Head of Sourcing and Supplier Management at Schroders Personal Wealth.