Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Finance

NEW PAYMENT PRACTICE REPORTING OBLIGATION COMES INTO FORCE ON THURSDAY

NEW PAYMENT PRACTICE REPORTING OBLIGATION COMES INTO FORCE ON THURSDAY

Tony Duggan, CEO of Crossflow Payments, comments on the new obligation requiring large businesses to publicly report on their payment practices to suppliers:

“This is a big stick from the Government to drive up standards in payment practices after years of concerns about large businesses using their bargaining power to pay suppliers late knowing they will face no consequences. But big sticks are more effective if people know they are there, and we think that this new obligation is not sufficiently well known about or understood.

“Many businesses will have to make their first report as early as November and failure to report or inaccurate reports will be a criminal offence.

Businesses able to improve working capital while supporting suppliers 

“An increasing number of large businesses are finding ways to improve their working capital, while ensuring suppliers can receive payment immediately – thereby benefiting themselves and their suppliers. This is possible through sophisticated supply chain finance solutions. Solutions like these are tacitly recognised by the requirement to report whether a supply chain finance solution in place, so this is important step forward.

Missed opportunity

“However, the government has missed a golden opportunity to recognise the benefits of supply chain finance. This is because the dates business have to record does not take into account the date on which funds are released if a supply chain finance solution is in place.

“The result will be that the data the government collects will paint a false picture of the relationship between corporates who have implemented a supply chain finance solution and their suppliers. Even if a supplier accesses outstanding payments instantly using supply chain finance to invest, hire and grow, the report by the corporate will make it look like they had to wait for the full term of the payment.

“This cannot be right and we hope to persuade the government to change the reporting obligation to recognise corporates’ efforts to support their suppliers with supply chain finance.”

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post