According to the source, the proposed changes up for consultation would make it mandatory for large and listed companies to report every quarter the average time taken to pay invoices and what proportion of invoices are paid beyond terms, within 30 days, over 30, 60 and 120 days.

In addition, companies would also have to publish on their websites details of their supply chain finance and e-invoicing, standard payment terms, changes to standard periods for payment and invoice dispute resolution mechanisms.

The measures are aimed at giving suppliers information to help them negotiate fair contract terms, challenge unfair terms and better plan when to expect payment. It is also hoped they will increase competitive pressure to improve payment practices and policies in line with peers and encourage businesses to process payments more efficiently, the source adds.

The reporting requirement follows the announcement in October 2014 that a new Prompt Payment Advisory Board has been set up to strengthen the impact of the Prompt Payment Code. These measures are part of government plans to tackle late payments under amendments to the Small Business, Enterprise and Employment Bill, which is currently going through Parliament.

The consultation will close on January 13, 2015.