Institute of Credit Management

Lord Mandelson – Prompt Payment Code

Government payment code helps small firms’ cashflow

The Government has introduced a Prompt Payment Code to help increase the speed of payments from large companies to small businesses. Drawn up in partnership with the Institute of Credit Management (ICM), the voluntary code aims to encourage prompt payment of invoices and encourage good practice in business to business deals. Leading suppliers are being urged to pledge their commitment and use it to underline their reliability. Asda, British Gas and John Lewis Partnership have already signed up to the initiative. While the code does not specify how quickly companies should settle their bills, it states that companies should ‘pay suppliers on time within terms agreed at the beginning of a contract.’ Suppliers will be able to raise concerns about late payers on the ICM website. Lo... »