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. 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.


A letter has been sent to all signatories advising them of the timetable for planned changes that will be phased in over coming months. The letter can be viewed here.


 
 
Matthew Hancock MP

Prompt payment is a significant problem for UK businesses. Late payments hamper cashflow, especially of smaller businesses, and in the worst case can threaten their survival.

The Prompt Payment Code is about encouraging, promoting and setting an example of best practice between organisations and their suppliers. The pledge signatories make to demonstrate the highest standards is integral to driving a change in UK payment culture. Evidence shows that Code signatories are already prompter payers than non-Code members and we need to ensure that they continue to be trailblazers. This is why we have strengthened the Prompt Payment Code to make sure it really is a badge of honour, inspiring confidence and a strengthening relationship with suppliers.

The Code will now promote 30 day payment terms as the norm of acceptable behaviour in the UK, with 60 days as the maximum in all but exceptional circumstances. Signatories will also commit to avoid practices that are grossly unfair and adversely affect suppliers. The new Code Compliance Board will rigorously monitor the Code and ensure the highest standards are met by all signatories.

Our work to strengthen the Code forms part of the comprehensive package of measures to tackle late and unfair payment, including legislating to introduce a new mandatory obligation on all large companies to report publicly on their payment performance from April 2016.

These changes will instill confidence in suppliers allowing them to plan both for their short and longer term futures. We expect the very best of British business. I expect all major UK companies to sign up to the new Prompt Payment Code and tackle this problem once and for all.


Matthew Hancock MP, Minister of State for Business, Enterprise and Energy.


 
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.

   
 

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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