EVCOM Member Nuala McLaughlin has launched a petition to ban 90 day payment terms on invoices. Find out why and add your name to the petition below!
by Nuala McLaughlin (Plastic Pictures)
The draconian practice of big corporations/companies subjecting smaller companies or self-employed individuals to 90 day payment terms needs to be stopped. While 90 day payment terms are considered “bad form” they are not illegal. Many small companies & individuals suffer hugely because of this. Many go bust.
Cash flow is the back bone of any small company, if they haven’t got the cash, they can’t pay their suppliers or staff. If they can’t pay their suppliers or staff, they, in turn, can’t operate properly. Staff can’t pay their mortgages or rent on time, childcare fees, utility bills etc.
The stress this practice puts on small companies & individuals is huge. It increases the need for credit, interest payments, late payment fees and so on, all of which hurt cash flow. It also clogs up the local economy.
If large corporations/companies expect smaller companies & individuals to supply them with top quality work and products, the very least they can do to accommodate this is to pay up within 30 days.
So – please sign to have the practice of 90 day payment terms banned.
I propose:
30 day payment terms to be standard practice.
60 day payment terms by agreement of BOTH parties
Thank you for highlighting this insidious problem Nuala. It’s never gone away and as a freelance (alongside other freelancers with similar tales) I can testify how this feels, not to mention the financial impact. The stress and the unanswered calls and em’s (after you have done a job – in ‘good faith’) as you chase and no one answers or fobs you off is awful – makes you feel so small and impotent. I think all EVCOM members who are employers should have a stated ethical policy about this – as they do on other matters – it’s just as vital. All best wishes and I am sure you have taken this stand because of bitter experience.