RHA attacks company over invoice term increase
The Road Haulage Association attacked defence technology supplier QinetiQ for its unilateral increase of invoice payment terms.
QinetiQ is the latest “blue-chip” company to announce to its suppliers that it would increase the amount of time it takes to pay its bills. In this case, notice was given in little more than one week from the new terms, making it extremely difficult for SME suppliers to take account of the impact on their cash flow.
RHA chief executive Geoff Dunning said: “The QinetiQ action – an email to suppliers without warning – was brought to our attention by a member and is the latest example of an approach to paying invoices that has become all too common among large transport buyers.
“Our member had a contract that stated that invoices would be paid in 30 days. That has become 60 days, with little notice.
“QinetiQ, with this action, is spreading bad business practice and is breaking both the spirit and letter of the Prompt Payment Code. To make matters worse, QinetiQ is a major supplier to central government – the Ministry of Defence – which has a policy of prompt and reliable payment.
“I am writing to the business secretary, Lord Mandelson, to urge him to apply pressure to QinetiQ to reverse this decision and to apply a broader principle across government – that if you want to benefit from prompt payment by government, you must also pay your suppliers in an acceptable manner”.
Road Haulage Association – phone us first
For more details, contact RHA Head of Media Relations, Kate Gibbs on:
Tel: +44 (0) 1932 838917
Mob: +44 (0) 7979 531451
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