IPA joins worldwide call on late payments

The worldwide initiatives seeks agreement on payment terms that support a positive and mutually beneficial relationship.

The IPA has joined forces with key agency associations from around the world to issue a global statement on the damaging effects of late payments.

The statement calls for each members’ clients to seek agreement on payment terms that support a positive and mutually beneficial relationship. This is a collective action to support the sector and those that rely on the advertising industry for their livelihood.

Says Paul Bainsfair, Director General, IPA: "The IPA is delighted to be part of this worldwide initiative. I have said many times that late payment should not be presented as an 'understandable action' when most of the big companies that do it do not have any liquidity issues. When agencies have to wait for money then their suppliers (many sole traders who do not carry much or any working capital) have to wait for their money.

"So the big companies who boast about their social responsibility are effectively causing real harm to the people that have been employed on their behalf. Late payment should never been seen as an acceptable business practice. What is acceptable, and in times of crises like now, is a working dialogue with your agency as to how to navigate a jointly agreed way forward, if cash flow is a real issue, but it should never be at the expense of an agency’s credit rating or being able to retain its people."

Last updated 20 May 2020