Prompt Payment Code

Late Payment Epidemic Continues For Small Businesses

Late Payment Epidemic Continues For Small Businesses

Small businesses continue to struggle with late payment problems, with research by Tungsten Network revealing that 12% of companies wait 90 days. Furthermore, many companies say their cashflow is stretched beyond its limit and they are missing out on new business as they cannot afford to take on any new clients until they get paid. The news comes despite a surge in government efforts to lessen the payment delay for small and medium businesses, which included the introduction of an advisory board, a new commissioner to deal with small business complaints, and strengthening the Prompt Payment Code. More recently, small business minister Anna Soubry announced plans to appoint a commissioner under the Enterprise Bill. The government’s overall intention is to get businesses to pay their supplie... »

Prompt Payment to be Duplicated by ‘Fair Payment’?

The announcement of the Government’s plan for a ‘fair payment’ code, to accelerate payments to sub-contractors on public construction projects, has received a cautious reception from the Institute of Credit Management (ICM) and Bacs Payment Schemes Limited (Bacs), already working in partnership to build awareness of the issue of late payments in the UK, through the Prompt Payment Code. Launched in 2008, the Prompt Payment Code is hosted and administered by the ICM, on behalf of the Government’s Department for Business Innovation and Skills (BIS). The Code is designed to encourage and promote best practice between organisations and their suppliers and a recently launched BIS guide to getting paid on time is part of the marketing programme designed to promote the Code. Philip King, chief exe... »

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... »