Thursday 23rd May, 2019
Leading outsourcing group G4S has had its payment practices investigated in a report by the Small Business Commissioner.
The report highlights poor payment practices exercised by G4S against a small business supplier. The small business submitted an invoice for £31,880.49 on 7 October 2018 based on contractually agreed 60-day payment terms, according to the report.
The payment was not received on the due date. "G4S confirmed that the invoice had been approved however, could not provide confirmation of a payment date".
Paul Uppal commented: “G4S is the largest outsourcing company in the UK and as a strategic government supplier they have a responsibility to lead by example and demonstrate timely payment practices to ensure small businesses are not left disadvantaged.”
Steve Poole, G4S Head of Transactional Services, commented: “G4S has over 5,000 suppliers in the UK and receives 250,000 invoices a year. We are committed to honouring the payment terms as agreed with our suppliers. We have also made significant investment in our payment software, staff training and ticketing systems to ensure our suppliers are paid promptly.”
The Commissioner has made recommendations to the company such as, “G4S to offer all small businesses 30-day standard payment terms in line with the Government’s commitment for strategic suppliers to pay promptly.”