Is Your Supplier on the Government “Naughty” List?

Why It Matters

Late payments erode SME cash flow and can jeopardize growth, so early visibility into a buyer’s payment behavior is critical for financial stability. Using publicly‑available government data turns a blind‑spot into a manageable risk.

Key Takeaways

• UK government’s Check Payment Practices tool reveals average payment times
• Late payment rates above 40% signal high supplier risk
• Fair Payment Code Gold Awardees pay 95% invoices within 30 days
• Ask prospects about payment runs and AP contacts during onboarding
• Tracking supplier payment habits safeguards SME cash flow

Pulse Analysis

In the United Kingdom, large corporations are legally required to publish their payment performance on the government’s Check Payment Practices and Performance portal. For small and medium‑size enterprises (SMEs), this data is a goldmine: it shows the average days a buyer takes to settle invoices, the proportion of late payments, and whether the buyer supports e‑invoicing, which typically speeds up processing. By filtering prospects through this "naughty or nice" list, suppliers can quickly flag high‑risk clients before committing resources.

Complementing the government database is the voluntary Fair Payment Code, administered by the Office of the Small Business Commissioner. Companies that achieve Gold Award status have pledged to pay at least 95% of invoices within 30 days, signaling a strong commitment to supplier fairness. Accessing the awardee directory allows SMEs to target "gold star" clients, reducing the likelihood of cash‑flow squeezes caused by delayed payments. The dual‑track approach—checking statutory data and seeking out code‑compliant partners—creates a layered risk‑assessment framework that is both transparent and actionable.

Beyond data, proactive communication remains essential. Asking potential clients about their payment runs, invoicing cycles, and points of contact in accounts payable during onboarding establishes clear expectations and builds trust. Suppliers who adopt a credit‑controller mindset from day one can negotiate better terms, anticipate cash‑flow gaps, and protect their bottom line. As payment‑performance transparency becomes more embedded in UK business culture, firms that ignore these signals risk falling behind in a competitive market where financial agility is a decisive advantage.