The average time taken for VISION SECURITY GROUP LIMITED to pay invoices has increased over the past three periods, going from 38 days in 2017-2018 to 47 days in 2019-2020. This is a concerning trend as it shows that the company is taking longer to pay their suppliers.
The volatility of VISION SECURITY GROUP LIMITED's invoice payment times can be seen in the fluctuation of the percentage of invoices paid within 30 days and those paid between 31 and 60 days. While there is a slight increase in the percentage of invoices paid within 30 days in the latest period, there is a larger increase in the percentage of invoices paid between 31 and 60 days. This indicates that the company's invoice payment times are becoming more inconsistent and less reliable for suppliers.
| 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 |
|---|---|---|---|---|---|---|
| 01 Sept 2019 - 31 Mar 2020 | 30 Apr 2020 | 47 | 23% | 60% | 17% | 18% |
| 01 Apr 2019 - 30 Sept 2019 | 31 Oct 2019 | 39 | 39% | 47% | 14% | 23% |
| 01 Apr 2018 - 30 Sept 2018 | 31 Oct 2018 | 36 | 52% | 39% | 9% | 16% |
| 01 Oct 2017 - 31 Mar 2018 | 30 Apr 2018 | 38 | 36% | 49% | 15% | 14% |
This information is as reported by the business, and responses are in their own words.
Standard payment terms
Our standard payment terms state that payment of supplier invoices for goods and services will be made 60 days from the end of the month in which a correct, undisputed and properly due VAT invoice is received, unless otherwise agreed by a duly authorised representative. The business also operates a no purchase order, no pay policy, unless otherwise agreed, in exceptional circumstances, by a duly authorised representative. Invoices received, and which do not include a valid purchase order number, are rejected and returned to the supplier.
Were there any changes to the standard payment terms in the reporting period?
No information available
Any other information about payment terms
Since acquiring VSG, Mitie has made a significant number of changes to its accounts payable processes to actively improve our processes, ensuring there is an overall improvement in our payment practices and our paid-on time performance. These improvements continue to be implemented and positively impact on the performance. Since the last reporting period and the acquisition VSG was merged on 01st April 2020 into the Mitie Security Limited business and the payment processes and procedures seen in this Mitie entity will now be applied to all VSG vendors in order to ensure that the high PPPR targets achieved here are benefitted to the VSG vendors
Maximum contractual payment period agreed
90
We recognise the strategic importance of our supply chain partners, and as such are committed to treating them fairly. Our preference is to always address disputes in a transparent and timely manner, always acting in good faith, through open and constructive discussion. If such discussions fail to resolve a dispute, an authorised representative of the supplier and the company shall, within 30 days of a written request from one party to the other, meet in good faith to resolve the dispute. If the dispute remains unresolved either the supplier or the company shall refer it to mediation in accordance with the Centre for Effective Dispute Resolution ("CEDR") Model Mediation Procedure that is in force at the date of the referral.
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