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... »

Tighter Credit Terms Squeezing Small Businesses

Small businesses are being forced to rethink their sales strategies by suppliers tightening credit terms in response to economic downturn. Research by credit management specialists Graydon UK found that more than half of 400 firms surveyed plan to play it safe by further tightening their credit criteria during 2008, with only two per cent feeling confident enough to extend their current credit term policies. As a result of this ‘safety first’ culture, businesses in all major sectors are having to defer or cancel plans to launch new products or ventures because they cannot get the credit they need. “Suppliers are looking long and hard at those companies who are asking them for credit and with business insolvencies increasing at an alarming rate the ‘safety first&rsqu... »