£600 Billion Budget

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The Public Sector is quite unlike any other industry in the respect that they have guaranteed budget spend. The £600 billion budget has got to be spent – they actively try to spend every penny of their budget because if they do not then they will not get anywhere near this amount next year. And because all their policies are geared towards small businesses, they have had to look at their own payment terms – by bringing in The Late Payment Policy.

The Public Sector has changed the way in which they pay companies for work done or goods supplied. They now have 2 options: they can pay you with a procurement card that each department buyer now has – the benefit to you is that you get paid instantly. They have also changed their invoicing terms from 60 days to 30 days.

To run in-line with their invoicing terms they have a late payment policy where they have to settle any account within 30 days of completion of work. If for some reason they go over this time period then you can legally charge them interest for each day.

Author: manager