What does paid within terms mean for PTRS?

Quick answer

A small-business payment is treated as paid within terms where its calculated payment time is less than or equal to its applicable payment term.

What does this mean?

The Payment Times Report requires the percentage of small-business payments made within terms. The Regulator calculates this using the number of payments in the SBTCP Dataset where Payment Time is less than or equal to Payment Term, divided by the total number of payments in the SBTCP Dataset.

Practical point

Payment time and payment term are different fields. One measures how long the payment actually took; the other represents how long the relevant agreement allowed the entity to take.

Other ways people ask this

• How does PTRS decide whether an invoice was paid on time?
• What does percentage paid within terms mean?
• Is payment time the same thing as payment term?
• How is the within-terms percentage calculated?

Official sources

• Payment Times Reporting Guidance Materials
  Percentage of small business payment within terms
  Paragraph: 195 · Page: 47
• Payment Times Reporting Guidance Materials
  Payment terms
  Paragraphs: 143, 144, 149, 150 · Page: 38-39

Related guidance

• Which payment terms should I use for PTRS?
• How is payment time calculated for PTRS?
• What is P95 in Payment Times Reporting?
• What do the PTRS payment-time bands mean?

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