FINANCE & SPEND
“Faster payment practices also reduce the likelihood of supply‐chain disruption driven by supplier distress rather than operational or geopolitical shocks”
Sapna Amlani Supply Chains Industry Practice Lead Moody’ s Analytics
Adapting to this environment is likely to require changes in supplier financing and procurement practices, particularly as payment behaviour faces increasing scrutiny from boards and investors.
“ Over time, this points to a move away from purely cost‐driven supply chains toward greater emphasis on reliability, transparency and long‐term supplier health.”
However, regulation is only one side of the coin. Patrick Bermingham, CEO of business payment specialist Adflex, warns that late payments are often infused with how sectors operate.
He says:“ Late payments are not just a matter of poor visibility; they are embedded in how sectors- like construction for example- operate. Long, complex supply chains and uneven bargaining power mean that cash flow risk is routinely pushed onto smaller suppliers. When payments are delayed at the top, the impact cascades and in many cases, late payment becomes an informal financing mechanism.
“ Stronger penalties for late payments will help expose these practices, but it won’ t fix the structural challenges driving them, from liquidity pressures to contractual complexity. Without broader change, there is a risk that reforms become a compliance exercise rather than a catalyst for real progress.
“ Ultimately, changing the rules is one thing- changing behaviours is another. If the Government is serious about tackling late payments, it needs to go further
92 May 2026