New Report: Novus are amongst the fastest payers
Every year, the Government publish figures on the promptness of businesses in paying their suppliers. Having submitted numbers for 2019/2020, Novus ranks amongst the quickest to pay supplier invoices in the industry.
Average time taken to pay invoices
This is the average elapsed time taken for a business in receipt of goods or services to pay the supplier.
Published on 29th July 2020, Novus achieved an average payment time of 33 days against all of its invoices; a number that places the building contractor inside the top 3 organisations of all its major competitors (total 11 compared).
The article also indicated the average proportion of invoices not paid to the terms originally set out is 28 per cent, compared to 9% this year for Novus.
The importance of quick payments
As a company, Novus strives to build strong and trustworthy partnerships with their suppliers, maintaining an open dialogue with its supply chain, and of the belief that quick payments are reflective of mutual respect.
The importance of quick payments goes almost without saying in the current climate. The backdrop of Covid-19
Late payment of invoices is a problem for most suppliers of goods and services in any industry, and in a challenging economy, the issue is only heightened.
Subsequently, it will probably come as no surprise that late payments and bad debts are the main causes of insolvency in construction companies, contributing almost a quarter of all insolvencies.
Publicly available information
For further information about average payment times, visit the Government website, specifically the “Check when large businesses pay their suppliers” page.
From here you can check the average time it takes for a large business to pay its suppliers and the proportion of payments that it doesn’t pay on time.
Specific information about Novus can be found here.
Construction News Payment 100: Where Do Novus Rank?
On 14th January, Construction News published its annual analysis on payment practices within construction. So, how do Novus compare to the rest of the industry?