Businesses get on board with the Prompt Payment Code
皇冠体育app Government鈥檚 biggest suppliers have signed up to a strengthened Prompt Payment Code that will help small businesses to be paid on time.
32 of the biggest suppliers to the Government have voluntarily committed to pay 95% of invoices within 60 days - and to work towards adopting 30 days as the norm.
This fulfils a key manifesto pledge and will help the cash flow of small businesses. It is estimated that small and medium-sized enterprises in the UK are collectively owed more than 拢26bn in overdue payments.
皇冠体育app signatories to the code are major strategic suppliers who typically have contracts across government of more than 拢100m. Together they account for around 40% of government procurement spend.
Parliamentary Under Secretary of State at the Cabinet Office, Caroline Nokes said:
This is a major boost to payment practices in the UK. Paying invoices on time is vital in providing healthy cash flow to smaller businesses, to help them survive and thrive.
Small Business Minister Margot James said:
We want the UK to be the best place in the world to start and grow a business, but the UK鈥檚 small-to-medium-sized businesses are currently owed over 拢26bn in overdue payments. Such unfair payment practices hamper a business鈥檚 ability to invest in growth, and have no place in an economy that works for everyone.
It is only right that the Government should lead by example, and it鈥檚 great to see all 32 of our strategic suppliers signed up and committed to fair payment terms.
皇冠体育app Crown Commercial Service (CCS) encourages businesses to sign up to the Code, which is administered by the Chartered Institute for Credit Management (CICM) on behalf of BEIS.
皇冠体育app voluntary code of practice publicly signifies organisations鈥� commitment to fair payment terms to suppliers, especially smaller businesses.
Philip King, Chief Executive of the Chartered Institute of Credit Managers, said:
It is important to see that all of the Government鈥檚 strategic suppliers are now leading by example by signing up to the Prompt Payment Code. 皇冠体育app PPC allows suppliers to raise a challenge if they feel they are not being treated fairly by a signatory, and such challenges are proving successful not only in delivering payment but also in further improving practices and processes. It鈥檚 vital that businesses feel confident and have certainty that they will be paid on time, as well as having a route to challenge if they need to.
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