There has been a consistent decrease in the average time taken for EARLY LEARNING LIMITED to pay invoices from 40 days in 2018 to 30 days in 2020.
The percentage of invoices paid within 30 days has increased from 48% in 2018 to 56% in 2020. However, there has been a volatility in the percentage of invoices paid between 31 and 60 days, which decreased from 18% in 2018 to 14% in 2020 but increased to 16% in 2019.
The average time taken for EARLY LEARNING LIMITED to pay invoices has decreased by 10 days over the past three periods. This can be attributed to an increase in the percentage of invoices paid within 30 days and a decrease in the percentage of invoices paid later than 60 days.
| Reporting Period | Filing Date | Average Time to Pay (days) | Paid within 30 days | Paid 31-60 days | Paid after 60 days | Not Paid within Terms |
|---|---|---|---|---|---|---|
| 24 Mar 2018 - 05 Oct 2018 | 05 Nov 2018 | 40 | 48% | 18% | 34% | 42% |
This information is as reported by the business, and responses are in their own words.
Standard payment terms
ELC has set the following standard payment terms with its suppliers: a. Goods for re-sale 90 days from date of invoice; b. Goods not for resale up to 60 days from date of invoice. These terms vary based on individual agreements. Suppliers are made aware of payment run cycle: a. Goods for resale payment runs submitted twice a week; b. Goods not for resale payment run submitted weekly These impact payment within agreed terms, but suppliers are aware of these payment cycles. As a result, 23% of late payments are settled within 1 week of the due date.
Were there any changes to the standard payment terms in the reporting period?
No information available
Any other information about payment terms
ELC is part of Mothercare group, average late payment across the group is 37% of which 27% is paid within 1 week after due date due to the timing of payment runs. Contractually ELC run a debit note process for supplier income on the Accounts Payable ledger therefore impacting timing of some invoices paid.
Maximum contractual payment period agreed
105
Invoice or payment disputes are initially reported to Accounts Payable where member of team will investigate with the account relationship holder. In the event of a dispute not being resolved, it will be escalated to the Treasury Manager and/or the Head of Group Finance and the Senior Buyer. Once resolved the supplier will be paid in accordance with payment terms or on the next available payment run.
Has this business signed up to a code of conduct or standards on payment practices?
For example, signatories to The Prompt Payment Code must commit to paying 95% of their invoices within 60 days.
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Does this business offer e-invoicing in relation to qualifying contracts?
This is where suppliers can electronically submit and track invoices. It's not just allowing suppliers to email them an invoice.
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Does this business offer supply chain finance?
This is where a supplier who has submitted an invoice can be paid by a third-party finance provider earlier than the agreed payment date. The business would then pay the finance provider the invoiced sum.
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Under its payment practices and policies, can this business deduct sums from payments under qualifying contracts as a charge for remaining on a supplier list?
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During the reporting period, did the business deduct sums from payments as a charge for remaining on a supplier list?
No information available
EARLY LEARNING LIMITED is a liquidation private limited company, incorporated on 23 March 1973, based in the London region. Registered business activity: Non-trading company.
From Companies House records.