Monday 23rd March, 2020
TSB has announced it will ensure that all of its smallest suppliers will be paid within just 10 days of invoicing the bank. The move will apply to all companies that supply goods and services to the bank, even if the contract allows it to pay over a longer period.
While TSB is already one of the leading financial services businesses for prompt payment, the move is designed to provide cash flow certainty for small suppliers.
The bank has also pledged to write a 30 day guarantee into all supplier contracts going forward, as a further commitment to the UK businesses it works with in the future. Where possible, the bank will seek to pay suppliers even sooner than the 30 day period.
Alongside ensuring prompt payment TSB is reaching out to all small suppliers to discuss specific challenges they face.
This comes on the back of TSB offering to support its 100,000 business customers with a package of measures and the reassurance of being the only bank to offer a Lending Pledge if businesses get into distress. The pledge was developed in 2019 in conjunction with stakeholders including Federation of Small Business and the APPG on Fair Business Banking.