GOV.UK
EARLY LEARNING LIMITED
Company number: 01103663
Reporting period:
24 March 2018
to 5 October 2018
This report was filed on 5 November 2018
and approved by Glyn Hughes
Payment statistics
Average time taken to pay invoices: 40 days
Invoices paid:
- within 30 days: 48%
- in 31 to 60 days: 18%
- in 61 days or more: 34%
Invoices due but not paid within agreed terms: 42 %
Payment terms
Shortest standard payment period
7 days
Longest standard payment period
105 days
Standard payment terms
ELC has set the following standard payment terms with its suppliers:
a. Goods for re-sale 90 days from date of invoice;
b. Goods not for resale up to 60 days from date of invoice.
These terms vary based on individual agreements.
Suppliers are made aware of payment run cycle:
a. Goods for resale payment runs submitted twice a week;
b. Goods not for resale payment run submitted weekly
These impact payment within agreed terms, but suppliers are aware of these payment cycles. As a result, 23% of late payments are settled within 1 week of the due date.
Were there any changes to the standard payment terms in the reporting period?
No
Maximum contractual payment period agreed
105 days
Contract lengths are dependant on where the goods are shipped from as the product will not be available for selling for a longer period of time.
Any other information about payment terms
ELC is part of Mothercare group, average late payment across the group is 37% of which 27% is paid within 1 week after due date due to the timing of payment runs.
Contractually ELC run a debit note process for supplier income on the Accounts Payable ledger therefore impacting timing of some invoices paid.
Dispute resolution process
Invoice or payment disputes are initially reported to Accounts Payable where member of team will investigate with the account relationship holder. In the event of a dispute not being resolved, it will be escalated to the Treasury Manager and/or the Head of Group Finance and the Senior Buyer. Once resolved the supplier will be paid in accordance with payment terms or on the next available payment run.
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