Paying Suppliers Faster Isn’t Generous – It’s Just Good Business
Why the Conversation Needs to Change
Over the past few months, there’s been a noticeable shift in the kinds of emails landing across our industry. Most of them carry a similar message — rising costs, global uncertainty, and the need to adjust prices or tighten terms in response.
It’s understandable. Businesses everywhere are feeling the pressure.
But while a lot of the focus has been on how to protect margins, there’s been less said about how we support the businesses that make those margins possible in the first place — our suppliers.
At Bakers, that’s something we’ve been talking about a lot internally.
As Tom Baker, who leads Finance and Development here, puts it:
“We know we can’t control what’s happening globally, but we can control how we behave as a customer. That felt like the right place to start.”
Why payment terms matter more than we admit
Late payment has been part of doing business for a long time, particularly in manufacturing and supply-heavy industries like ours. It’s often accepted as standard practice — something that’s inconvenient, but unavoidable.
The reality is more serious than that.
Across the UK, late payments cost the economy around £11bn each year and remain one of the leading causes of cash flow pressure for small and medium-sized businesses. In our own industry, payment times are often significantly slower than the national average, which only adds to that strain.
For larger organisations, stretching payment terms might feel like a way to manage cash flow. For smaller businesses, it can mean time spent chasing invoices instead of growing their business — or, in some cases, struggling to stay afloat.
Tom puts it simply:
“Good businesses shouldn’t be under pressure because they’re waiting to be paid for work they’ve already done.”
A small change, made deliberately
With that in mind, we decided to look at our own approach.
From April 2026, we introduced a revised payment structure at Bakers. Rather than treating payment as a monthly process, we now run two payment cycles each month, with the aim of ensuring all approved invoices are settled within 30 days — and in many cases, considerably sooner .
It’s not a radical change on paper, but in practice it means suppliers see cash coming in more regularly and more predictably.
That was the intention.
“It’s not complicated,” Tom says. “Cash flow matters, especially at the moment. If paying a bit sooner helps another business operate more smoothly, why wouldn’t we do it?”
Strengthening the supply chain, not stretching it
There’s a long-standing habit in many industries of treating payment terms as something to push and pull depending on circumstances. When costs rise, payments tend to stretch.
The problem is that pressure doesn’t disappear — it just moves.
Over time, that approach can weaken supply chains rather than protect them. Businesses that are constantly managing delayed payments have less room to invest, less flexibility to respond, and less resilience when challenges arise.
We see it differently. If the businesses we work with are strong, responsive and able to invest in what they do, that benefits everyone involved.
Or as Tom puts it:
“If you want a supply chain that works well, you’ve got to support the people in it. Otherwise you’re just creating problems further down the line.”
A wider shift — and an opportunity
There are signs that attitudes towards payment are starting to shift more broadly. Increased scrutiny, proposed legislation, and growing awareness of the impact of late payments are all pushing the conversation forward.
But change doesn’t really happen through policy alone — it happens through behaviour.
We’re not the first business to take this approach, and we certainly won’t be the last. But if more companies start to look at payment not just as a financial lever, but as part of how they build strong, sustainable relationships, the impact could be significant.
Just good business
For us, this isn’t about making a statement. It’s about doing what we believe is right.
If we expect reliability, quality and service from our suppliers, then paying them fairly and promptly should be a given.
“Good work deserves to be paid for properly — and paid for on time,” Tom says. “Anything else just creates unnecessary friction.”
It’s a simple idea, but one we think is worth reinforcing.
Keep the conversation going
Keeping the conversation going
We’re keen to work with businesses that think in the same way, and to play our part in encouraging a more positive approach across the industry.
If it’s something you’re already doing — or something you’re thinking about — we’d be glad to talk.