New UK prompt payment standard issued
The new UK standard for prompt payment launched last week, BS7890, gives advice to both suppliers and debtors to help prevent and resolve payment disputes. The nine-point action plan has tips that may ring true at a number of companies that have grabbed the headlines recently. Among its recommendations: ‘3. Take steps to ensure that your financial and operational resources are sufficient to meet your obligations; 4.1 Ensure that your staff know and observe the limits of their authority to commit the organization (sic).’ And ‘5.2 Ensure that the other party has the same understanding of the agreed terms.’