CASE STUDY

Oct 22 2008 by Babette Decker, The Journal

THE high level of public sector business in the North East makes the 10-day payment pledge a particularly important part of the package.

Although small firms may complain in private about late payments, many are afraid to speak out in case they lose out on future tenders.

Kate Partridge, director of North East networking organisation the Bridge Club Ltd, admits her business has not always received payments within the previous 30-day window.

She welcomed the 10-day promise but is unsure whether it will work in practice. “It will be brilliant if they stick to it. But based on previous experience and doing contracts saying invoices should be paid in 30 days, what is written on paper is very different to what happens in real life.”

Partridge said the Government’s offers of advice to hard-pressed firms may not be taken up because businesses are not keen to discuss financial problems with organisations they did not know.

“Things like that are still very much relationship and trust-based. We work with people we know, and we can call them any time,” she said.