Firms promise to pay on time

TWENTY leading firms have signed up to Oldham MP Debbie Abrahams’ campaign to settle their bills promptly — but another 55 have said no or simply failed to respond.


The Oldham East and Saddleworth MP invited 75 of the top 100 FTSE companies to sign up to the Institute of Credit Management’s Prompt Payment Code to help small businesses and boost the economy.

Among those who have said “yes” are major companies such as Vodafone, Burberry, Royal Dutch Shell, Standard Life, Serco and Diageo.

But many have said no — and Sainsburys has written to its suppliers lengthening payment terms from 30 to 75 days.

The Government is now copying Mrs Abrahams’ campaign by writing to the top FTSE companies and announcing support for the introduction of a supply-chain finance scheme.

But Mrs Abrahams said: “Supply-chain financing still puts the burden on the SMEs, allowing the larger companies to hold on to their money, and is a sure way to give big companies an easy excuse to further lengthen their payment times to SMEs if they wish to.”