In these troubled times, Network Rail has announced that it is giving thousands of British firms a vital boost to their cashflow by moving to immediate payments for its suppliers. Payment could now be up to seven days quicker for SMEs and up to 28 days quicker for other suppliers.
From Monday 30 March, Network Rail has committed to pay its suppliers immediately, or as close to immediately as possible, following approval of the payment ledger, with the expectation that subsequent payments flow down the supply chain.
Network Rail believes that faster payments will support and strengthen the extensive supply chain that has a key role to play during this Coronavirus pandemic, ensuring that the railway can continue to get critical medical supplies to hospitals, food to supermarkets, and key workers such as doctors, nurses and police officers to their jobs.
Clive Berrington, Network Rail’s commercial and procurement director, said: “Our priority is to support the supply chain as much as possible through these unprecedented times. We have therefore moved all our suppliers to immediate payment terms, or as close as you can get following approval of the invoice, and we expect that to flow down to the supply chain.
“Together, we can help to ensure we have a strong supply chain when we emerge from this pandemic.”