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BOMBARDIER TRANSPORTATION UK LTD

Company number: 02235994

Reporting period:
1 January 2019 to 30 June 2019


This information is as reported by the business, and responses are in their own words.

This report was filed on 26 July 2019

and approved by Phil Hufton

Payment statistics

Average time taken to pay invoices: 109 days

Invoices paid:

  • within 30 days: 14%
  • in 31 to 60 days: 28%
  • in 61 days or more: 58%

Invoices due but not paid within agreed terms: 64%

Payment terms

Shortest standard payment periods

7 days

Longest standard payment period

210 days

Standard payment terms

1) It is the Company policy to agree appropriate terms of payment with suppliers for each transaction or series of transactions. Our general standard payment terms are 60 days from date of submission of satisfactory invoice. The longest standard payment terms of 210 days are for 20 suppliers with negotiated extended payment terms for which Bombardier Transportation UK Ltd pays interest for the extension beyond the standard 60 days. 2) Without the extended payment terms for these suppliers the average number of days to make payment would be 66 days. 3) Although 64% were not paid within our payment terms this is a result of being paid on the next available payment run, ie the end of the week they fall due. 49% of our invoices are paid on time or within 7 days of due date.

Were there any changes to the standard payment terms in the reporting period?

Answer not provided

Were suppliers notified or consulted about these changes before they were made?

N/A

Maximum contractual payment period agreed

240 days

Bombardier Transportation UK Ltd has 22 large volume suppliers with whom we have negotiated voluntary extended payment terms of 210, or in two cases, 240 days to which Bombardier Transportation UK Ltd pays interest on the extension period. Bombardier Transportation UK Ltd uses a bank as a paying agent for the suppliers with this bank in turn providing these suppliers with an invoicing discounting facility allowing the suppliers to get paid at their convenience. Without the extended payment terms for these suppliers the average number of days to make payment would be 66 days.

Any other information about payment terms

N/A

Dispute resolution process

The Company is committed to dealing with its suppliers in a fair, honest and professional manner whilst seeking best value for the business. We seek to resolve queries as quickly as possible to everyone’s satisfaction prior to payment being made. In the event that a dispute cannot be resolved by out accounts payable team it would be escalated in the first instance to the relevant head of department to seek a resolution. In the even that this is still not resolved the dispute would be referred to the Centre for Effective Dispute Resolution (CEDR).

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, this business has not signed up to a code of conduct or standards on payment practices.

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.

Yes

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.

Yes

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