Geotechnical and structural specialist Aspin goes against industry standard by introducing 60-day payment term for suppliers.
According to the firm, the move follows significant new investment and changes to the business structure announced earlier this year that will provide a more integrated service delivery for the rail, highways and infrastructure sectors.
However Aspin’s move comes after Network Rail annouced last month that it would mandate 28-day payment terms for its tier one suppliers during CP6. As a tier two contractor, Apsin will benefit from these better terms but will not be passing the same terms onto its suppliers.
Supplier meetings have been held to explain the move which is designed to help Aspin achieve its growth programme and share the success with its core, trusted suppliers, the firm has said.
Supplier payment terms are being standardised at 60 days net to match the industry credit terms for equality across the operations, said Aspin’s chief financial officer Iain Sale: “We have ambitious growth plans but have worked with differing forms of contract in the past so this is part of our strategy to align our operations for greater equality.
“Aligning our supplier payment terms with that of our customer base which is predominantly the tier one contractor sector makes sound business sense. Ultimately it means that all our stakeholders can share in the future growth and success.”
In April this year Aspin was saved from collapse by a buyout by US equity private equity investor Sandton Capital Partners, after it was owed £800,000 by Carillion.
Part of a wider programme of investment and change for the firm includes an operational restructure, new appointments to the senior executive team, project management and sales teams and the opening of a new office in Scotland.
Aspin CEO Russell Ward added: “In March of this year we secured the support of Sandton Capital Partners and have a secure financial base that’s critical in future-proofing our ambitious plans for the business.
“Our planned programme of change so Aspin works as one to deliver more of what our clients want is ongoing and more developments will be announced in due course.”