A survey on the BPPG’s website found that almost a quarter of respondents fail to confirm credit terms in writing with their customers, leaving the door open for customers to impose their own payment terms.

The Group refers to a legal precendent that states in the absence of agreed terms, it is the terms given in the last document presented in the negotiation process that apply to that contract. Agreeing terms of credit before a trade takes place will make sure that control remains with the supplier and customers know when they will be expected to pay.

Clive Lewis, BPPG chairman, said: "Terms can go back and forth like a ping pong ball in table tennis. Don't assume that your credit terms automatically apply, they must be agreed in writing first."

BPPG member Roy Ayliffe, added: "Businesses are shooting themselves in the foot by not agreeing terms upfront as it leaves their cash flow open to the abuse of late payers. Agreeing terms must be top priority for all businesses and should be as much a part of the contract negotiation process as delivery details, service and price."