GOV.UK
GRADUS LIMITED
Company number: 02152465
Reporting period:
1 July 2018
to 31 December 2018
This report was filed on 29 January 2019
and approved by James Collier
Payment statistics
Average time taken to pay invoices: 41 days
Invoices paid:
- within 30 days: 25%
- in 31 to 60 days: 66%
- in 61 days or more: 9%
Invoices due but not paid within agreed terms: 60 %
Payment terms
Shortest standard payment period
30 days
Longest standard payment period
90 days
Standard payment terms
30 Days End of Month
Were there any changes to the standard payment terms in the reporting period?
No
Maximum contractual payment period agreed
90 days
Standard Payment Terms
The majority of our suppliers are long term relationships with established payment terms either as dictated by the supplier or negotiated by both parties. For new suppliers, Gradus engage with the supplier to agree on the payment terms. In default of agreement otherwise, the standard terms used by Gradus are 30 days end of month.
The maximum payment terms agreed with a supplier during the period were 90 days end of month.
Changes in payment terms are usually requested only in the case of a new relationship where initial dealings have been on a pro forma basis and we are looking to agree standard payment terms. Changes are only made on an agreed basis.
Any other information about payment terms
In order to maximise administrative efficiency and reduce the need for daily payment processing, Gradus operate the following payment schedule:
• Monthly Payment Runs
o 3 BACS payments are run each month (containing multiple supplier payments)
o These are run on or around the 1st, 2nd and last week of the month
o Used to pay all suppliers who are on “30 days end of month” terms
o Smaller suppliers and sub-contractors are prioritised in the first payment run of the month
• Direct Debit
o Typically for utilities, vehicles leases and company credit cards
• Stand Alone BACS
o Where a supplier directs specific payment terms these are paid as ‘one off’ payments each month rather than through the standard payment runs
o Suppliers on the standard payment terms who require a payment to be brought forward have payments made via a one-off BACS payment
Earlier in the year the Board gave instructions to alter payment practices. From 1 July 2018 payments due on the last day of the month which have, by established practice, been paid in the next payment run following (usually in the first week of the month), will in future be paid in the last week of the month such that the contractual payment terms period is precisely met. This has already resulted in a reduction in overdue payments as evidenced in the statistics above (in comparison to the same statistics at 30 June 2018).
Dispute resolution process
• A dispute relating to a supplier invoice will be notified to the finance department by the member of staff managing the supplier relationship
• A note is made on the system that the invoice is in query and is not to be paid until resolved
• The supplier will be made aware of the nature of the dispute (by the appropriate purchasing contact) and the actions required to resolve
• We aim to resolve disputes as quickly as possible through dialogue with the supplier
• Once dispute is resolved the invoice is passed for payment and is either placed on the next available payment run or is paid via a one-off BACS transfer if required sooner such that the contractual payment terms are still met
Other payment information
Has this business signed up to a code of conduct or standards on payment practices? If so, which?
For example, signatories to The Prompt Payment Code must commit to paying 95% of their invoices within 60 days.No
Does this business offer e-invoicing in relation to qualifying contracts? This is where suppliers can electronically submit and track invoices. It’s not just allowing suppliers to email them an invoice.
No
Does this business offer supply chain finance? This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.
No
Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?
No
During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?
No