New measures to support Prompt Payment Code confirmed
16 Sep 2016
New measures to support the Prompt Payment Code (PPC) and combat late payments have been confirmed by the Small Business Minister, Margot James.
A letter to PPC signatories from Ms James and Philip King, Chief Executive of the Chartered Institute of Credit Management (CICM) outlined that firms should aim to pay suppliers within 30 days, and that this should eventually be the norm.
Currently, over 1,800 firms are signed up to the PPC, which sets out measures to ensure the fair and equal treatment of suppliers. These firms agree to maximum payment terms of 60 days.
If payment terms extend beyond 60 days, companies are required to demonstrate that exceptional circumstances apply.
The letter also confirmed the future appointment of a Small Business Commissioner, who will provide advice and support on payment issues and queries.
Commenting on the measures, Ms James said: ‘Prompt payment can make all the difference to small businesses, boosting their cashflow and allowing them to invest in growth for the future.
‘Although we have seen some progress, there are still too many business owners across the country who have not been paid on time by their customers.
‘We need a culture change to stamp this out and the PPC continues to play an important role in bringing this about, alongside a package of measures taken forward by government and industry.’