Don’t withhold supplier payments, urges BMA

Some manufacturers have been informed by major customers that payments could be late

02 Apr, 20

The Bathroom Manufacturers Association has called on customers not to withhold supplier payments during the COVID-19 pandemic.


Don't withhold supplier payments, urges BMA

It reported some manufacturers have been informed by major customers that payments could be withheld beyond invoicing terms.

The trade body said late supplier payments could make a bad situation worse, with refusal to pay in line with invoicing terms affecting bathroom manufacturers’ cashflow.

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It stated the Government has introduced a range of measures to help cashflow in the construction industry, including a procurement notice to ensure prompt payment of Government construction contractors.

However, the BMA states these efforts have not stopped some customers from refusing to pay invoices on time.

Chief executive of the BMA Tom Reynolds said: “We understand the strain that COVID-19 is putting on all businesses right now.

“That’s why we support the Construction Leadership Council’s letter to Boris Johnson requesting extra additional support for the construction industry.

“However some companies, including large players, are benefitting from liquidity support measures without passing it on to the whole supply chain.”

Reynolds continued: “Refusing to pay bills on time, for products already delivered, could to irreparable damage when manufacturers are already dealing with a sharp drop in demand.

“I’ve spoke to the Government’s Business Department about the issue, who understand the problem, and are looking at what can be done.”

The BMA has postponed its conference, which was to be held later this year, so its members could concentrate on recovery after the COVID-19 restrictions have been lifted.