Today, we proudly unveil a new addition to our platform with the introduction of Payment Practices Data, aimed at revolutionising how businesses navigate the challenges posed by late payments.
Late payments have long been a source of concern for businesses worldwide, impacting cash flow and, in severe cases, jeopardising their ability to trade. In the UK alone, the Federation of Small Businesses (FSB) reports at least 50,000 business closures annually due to a systemic poor payment culture developed over recent decades.
Understanding the critical importance of addressing this issue, our new offering, Payment Practices Data, empowers businesses with invaluable insights into the payment behaviours of the companies they engage with.
Key features of Payment Practices Data include:
To ensure the utmost accuracy and relevance, the platform gathers data daily, providing businesses with access to the most current information for each reporting period.
We have also introduced easy-to-read graphs reflecting average days to pay and payment percentages for all published years. Additionally, users can delve into further details of the latest Payment Report with additional links to access each previous report.
Unique derived data, including Days Taken to file, has been incorporated, allowing users to see how companies are performing against the mandatory 30-day requirement to file Payment Data and identifying any breaches.
The UK government recently amended the Small Business, Enterprise and Employment Act 2015, extending the Duty to Report scheme until April 2031. This is very welcome news for transparency on payment terms especially in such difficult current economic conditions.
However from our product research, it appears that over a quarter of all payment reports were submitted late, after the 30 day requirement from the company's financial reporting period. 10% were actually over 60 days late.
In addition, we believe there are potentially around over 500 stand alone companies that fit the criteria to report payment practices that have never filed any reports, and 100's more within group structures that should also have filed. Some companies have also stopped reporting despite still being over the required thresholds.
The extensive database includes payment reports from a substantial number of the largest companies in the UK. Anticipated growth in these figures is expected as the government seeks to boost transparency by reducing the reporting requirement threshold, fostering a better payment culture in the UK.
"Incorporating payment data into our platform provides an even more comprehensive view of the financial health of businesses, enabling clients to make better-informed decisions, enhancing risk management. Access to detailed payment practices data allows businesses to make more precise and strategic credit decisions, safeguarding against the adverse effects of late payments."
Craig Evans, CEO
Company Watch remains committed to staying at the forefront of innovation, continuously investing in expanding its offerings and tools to meet the dynamic needs of its clients.
For more information about Payment Practices Data or any of other financial risk solutions, please contact us.
As a leading provider of comprehensive solutions, Company Watch specialises in helping businesses identify, assess, and manage financial risks. Understanding that doing business is never entirely risk-free, we take pride in our commitment to delivering intelligent and actionable insights.
Since our inception in 1998, we have successfully predicted almost 90% of UK public insolvencies in advance. We utilise cutting-edge machine-learning techniques and explore new, alternative data sources to deliver unprecedented accuracy, ensuring our clients are well-prepared for the challenges of today and tomorrow.