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The Prompt Payment Code is driving a change in payment culture.

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   Department for Business, Innovation an Skills  
 
Matthew Hancock MP
Prompt payment is critical to the cash flow of every business, and especially to smaller businesses within the supply chain. But it is not just the timeliness of payment, though fast payment is always welcome, but rather the certainty of getting paid that is really important, and enables businesses to plan both for their short and longer term futures.

The Prompt Payment Code is about encouraging and promoting best practice between organisations and their suppliers. Signatories to the Code commit to paying their suppliers within clearly defined terms, and commit also to ensuring there is a proper process for dealing with any issues that may arise. This means that suppliers can build stronger relationships with their customers, safe in the knowledge that they will be paid, and confident that they are working with a business that values the service they deliver. Independent analysis by Experian suggests that current signatories to the Code represent over 60% of total UK supply chain value, so the Code is making a difference.

Certainty on payment inspires confidence across the supply chain - confidence that stimulates investment and growth. This confidence is good for both suppliers and customers.


Matthew Hancock MP, Minister of State for Skills and Enterprise.


 
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
   
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 Institute of Credit Management (ICM) 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.icm.org.uk for more cashflow and credit management advice.   twitter #promptpayment
 
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