• Immediate Working Capital
  • Growth, Aquisitions, MBOs
  • No Need for Re-negotiation
  • Instant Cash Flow
  • Saves Management Time
  • Improved Collections Performance
  • Recession-Proof Thinking
  • Practical How To Guides
  • Business Knowledge Bank
  • Fast Track Response
  • Competitive Rates
  • Personal Service
Major Firms Sign New Payment Code
Date Added: Wed May 20 2009
Major business organisations, including BCC, CBI, FPB, FSB and IoD, are championing prompt payment.

Approved signatories to the new Prompt Payment Code undertake to:

Pay suppliers on time
within the terms agreed at the outset of the contract
without attempting to change payment terms retrospectively
without changing practice on length of payment for smaller companies on unreasonable grounds

Give clear guidance to suppliers
providing suppliers with clear and easily accessible guidance on payment procedures
ensuring there is a system for dealing with complaints and disputes which is communicated to suppliers
advising them promptly if there is any reason why an invoice will not be paid to the agreed terms

Encourage good practice
by requesting that lead suppliers encourage adoption of the code throughout their own supply chains

Peter Mandelson, Secretary of State for Business, says: “Suppliers can have confidence in any company that signs up to the code that they will be paid within clearly defined terms, and that there is a proper process for dealing with any payments that are in dispute. This is an exciting development, and we shall regularly monitor its performance to ensure best practice is being followed.”