Thank you for visiting the Prompt Payment Code website.

The Prompt Payment Code (PPC) sets standards for payment practices and best practice and is administered by the Chartered Institute of Credit Management on behalf of the Department for Business, Energy and Industrial Strategy (BEIS). Compliance with the principles of the Code is monitored and enforced by the Prompt Payment Code Compliance Board. The Code covers prompt payment, as well as wider payment procedures.


Information The Chancellor of the Exchequer recently announced that BEIS would lead on a call for evidence on how to eliminate unfair payment practices to small businesses. This will include gathering views on existing measures, such as the Prompt Payment Code, and how these can be enhanced further to tackle unfair payment (a Call for Evidence will be launched later this year). In September 2016, Margot James, who was then the Minister for Small Business, Consumers and Corporate Responsibility and the Chief Executive of the Chartered Institute of Credit Management, wrote to all signatories of the Prompt Payment Code. This letter clarified the issue of 'exceptional circumstances' and highlighted the success of the Prompt Payment Code to both suppliers and signatories alike. Click here to read the letter. Should you have any questions, please contact us.


 
 

"Small businesses are the backbone of our economy and this Government's Industrial Strategy is building a Britain in which they can continue to thrive. Over the last 5 years the amount owed to smaller businesses in late payment has more than halved but we want to see payment practices improve even further.

The Prompt Payment Code sets the gold standard in payment terms and plays an important role in bringing about a culture change in payment practices. This, alongside a package of measures taken forward by government and industry, demonstrates our commitment to tackling late payment.

Alongside the Code, businesses can use the newly introduced Payment Practices Reporting website to find out more information about the payment behaviour of larger businesses and the Small Business Commissioner website to find out further advice on resolving payment issues."


 
Code signatories undertake to:
 
1, 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
2, Give clear guidance to suppliers
 
  • providing suppliers with clear and easily accessible guidance on payment procedures
    (click to see the 'Treating Suppliers Fairly' guide)
  • 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
3.
 
  • by requesting that lead suppliers encourage adoption of the code throughout their own supply chains
   
 

Additionally, signatories undertake to pay suppliers within a maximum of 60 days* (in line with late payment legislation requirements), to work towards adopting 30 days as the norm, and to avoid any practices that adversely affect the supply chain.

   
 

* Paying invoices within 60 days is a requirement (this is met by paying 95% of invoices within this period), unless there are exceptional circumstances. Exceptional circumstances might include, for example, instances where a company is able to demonstrate that they apply different terms to the benefit of their smaller suppliers (e.g. that they pay all of their small suppliers in a shorter period).

   
 

The Code Compliance Board will have the remit to investigate and, if need be, act when a term in a contract exists or changes in a way that a supplier claims to be grossly unfair.

   
Click 'Apply' to become a signatory to the Prompt Payment Code. Apply
   
The benefits:
 
  • If you pay promptly, then it's a real benefit to your supplier and potentially to you, the customer, as you could benefit too by receiving more favourable pricing or service which could make you more competitive.
 
  • Once approved, you can use the PPC logo on your documentation and website to show that you are serious about good payment practice.
 
 
The Prompt Payment Code is supported by:
 
                          
        
 
 
The Chartered Institute of Credit Management (CICM) is the largest professional credit management organisation in Europe. It represents the credit profession across trade, consumer and export credit, as well as in related activities such as collections, credit reporting, credit insurance and insolvency. Visit www.cicm.com for more cashflow and credit management advice.   twitter #promptpayment
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