Lord Campbell-Savours
Main Page: Lord Campbell-Savours (Labour - Life peer)
Lord Popat
My Lords, at least 80% of invoices are paid within five days by government departments. In March 2013, the biggest paid 97.1% of its invoices within five days. Although 75% of FTSE 100 companies have signed this code, we are doing everything possible to encourage and support the other 25% who have not signed. However, there is a good chance that these companies do not supply that many goods and services in the UK, even though they are FTSE 100 companies listed in the UK.
Lord Campbell-Savours
My Lords, why do the Government not promote invoice discounting and factoring more vigorously?
Lord Popat
My Lords, the discount depends on the supplier and the buyer. Quite often there is an agreement to make prompt payment, and if there is early payment a discount is offered by the supplier to the buyer. Factoring is very common; most banks like to factor invoices, rather than provide additional funding in the form of an overdraft. That is because factoring brings their capital back more quickly than an overdraft facility would.