AB AGRI LIMITED
Company number: 00193800
Reporting period:
16 September 2018 to 31 March 2019
Report filed on:
10 April 2019
Approved by:
Scott Gurvis
Payment statistics
Average time taken to pay invoices: 26 days
Invoices paid:
- within 30 days: 59%
- in 31 to 60 days: 39%
- in 61 days or more: 2%
Late and disputed:
- payments due in the reporting period which have not been paid within the agreed period: 97%
Payment terms
Shortest standard payment periods
0 days
Longest standard payment period
90 days
Standard payment terms
30 Days
Were there any changes to the standard payment terms in the reporting period?
No
Were suppliers notified or consulted about these changes before they were made?
N/A
Maximum contractual payment period agreed
90 days
This has been contractually arranged with structured finance division of an international PLC that specifically trades on longer terms.
Any other information about payment terms
AB Agri operates a weekly payment cycle by division that always includes all invoices that are due up to the date of the payment run. Once 2 days are added to reflect the time it takes funds to clear via BACS these payments will technically appear overdue. Within a weekly payment cycle invoices could be up to 8 days overdue, once BACS clearing time has been added.
For smaller suppliers, where timely payment is essential, we manually adjust the due date in our system to ensure the invoice is paid before its due date. However our systems can only hold the adjusted due date and therefore even these will appear overdue in this data, despite being paid early.
Our standard terms are 30 days from invoice date and the average number of days for making a payment of 26 clearly demonstrates that we are a prompt payer to suppliers.
Dispute resolution process
Purchase ledger within central finance will receive initial information for disputes and complaints with suppliers about all payments. All disputes are followed up as soon as possible with all information passed onto respective divisions for further investigation. All raw material disputes, which form the majority of payments, are tracked in a query log and regularly monitored to ensure they are dealt with on a timely basis. Additionally through the performance of supplier statement reconciliations disputes in relation to missing invoices will be identified before this becomes a late payment issue. In the incredibly rare situation where a resolution can’t be reached with a supplier then the case will be passed to central legal teams for resolution.
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 Fair Payment Code must commit to paying 95% of their invoices within 60 days.
Yes, this business has signed up to: Prompt Payment Code
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