Network rail switch to immediate payment terms

[whole diary]

[grahame]

from New Civil Engineer

Network Rail has committed itself to “immediate” payment terms to its suppliers during the coronavirus crisis.

Under the new terms thousands of British suppliers will receive payments quicker than they were expected.

From Monday 30 March, Network Rail has committed to pay its suppliers immediately, or as close to immediately as possible, following approval of the payment ledger, with the expectation that subsequent payments flow down the supply chain.

This means payment could be up to seven days quicker for SMEs and up to 28 days quicker for other suppliers.

Historically, large firms have taken a long time to pay their bills - a real nightmare for smaller businesses like ours who's customer base was large firms using us for very occasional needs.  And with the coming of the "electronic age" this long delay - said to allow for authorisations and payment systems - became unnecessary of that reason ... the real reason in many cases being for the customer to have their cash flow helped and borrowing requirements reduced at the expense of their suppliers.

Good to read that Network Rail are taking out one section of the delay - the delay between approval at the end of their system and actual payment.

This practise is not limited to Network Rail and I hope that big companies in the rail sector, and other payees such as government bodies local and national, will also modernise their systems such that they, too, pay promptly.  Just the other day I saw "terms - we will pay within 45 days of approval". It's well documented that many taxi operators won't take TOC^▸ (Train Operating Company) contracts because of how long they're kept waiting for their money.

[Electric train]

from New Civil Engineer

Network Rail has committed itself to “immediate” payment terms to its suppliers during the coronavirus crisis.

Under the new terms thousands of British suppliers will receive payments quicker than they were expected.

From Monday 30 March, Network Rail has committed to pay its suppliers immediately, or as close to immediately as possible, following approval of the payment ledger, with the expectation that subsequent payments flow down the supply chain.

This means payment could be up to seven days quicker for SMEs and up to 28 days quicker for other suppliers.

Historically, large firms have taken a long time to pay their bills - a real nightmare for smaller businesses like ours who's customer base was large firms using us for very occasional needs.  And with the coming of the "electronic age" this long delay - said to allow for authorisations and payment systems - became unnecessary of that reason ... the real reason in many cases being for the customer to have their cash flow helped and borrowing requirements reduced at the expense of their suppliers.

Good to read that Network Rail are taking out one section of the delay - the delay between approval at the end of their system and actual payment.

This practise is not limited to Network Rail and I hope that big companies in the rail sector, and other payees such as government bodies local and national, will also modernise their systems such that they, too, pay promptly.  Just the other day I saw "terms - we will pay within 45 days of approval". It's well documented that many taxi operators won't take TOC^▸ (Train Operating Company) contracts because of how long they're kept waiting for their money.

NR^» (Network Rail - home page) rely on a lot of small suppliers especially in the second and third tier suppliers many offer bespoke services and equipment supply / repair so its key for NR to protect these businesses

[Bob_Blakey]

This shouldn't be news; recipients of goods & services should have been doing this anyway, subject to a very minor delay to allow any invoice to be checked for veracity. Time for legislation?

(Yes I do have a degree in 'The Statement Of The Bl**ding Obvious).

[Electric train]

This shouldn't be news; recipients of goods & services should have been doing this anyway, subject to a very minor delay to allow any invoice to be checked for veracity. Time for legislation?

(Yes I do have a degree in 'The Statement Of The Bl**ding Obvious).

NR^» (Network Rail - home page) are generally quite quick with its payments to the first level, business know they will get their money from NR.  The second and third tier, NR has a code of practice for the payments by the first tier