Today marks a major step forward for SMEs concerned about late payments. A joint letter has been published that lays out the successful launch of the Prompt Payment Code (PPC) and commits government to further efforts to improve payment terms. The letter was penned by Margot James, Minister for Small Business and Philip King, Chief Executive of the Chartered Institute of Credit Management (CICM), and highlights the significant success of the Code to date
The letter also confirms the news that a Small Business Commissioner will be appointed shortly, and will have responsibility for providing help and advice to business, including on achieving prompt payment. According to the letter, signatories to the PPC should be paying within 30 days where possible and that this should increasingly be the norm as the practice takes hold at all levels of business.
‘We need a culture change’
Margot James says in the letter that: “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 Prompt Payment Code continues to play an important role in bringing this about, alongside a package of measures taken forward by government and industry. The businesses signed up to the Code commit to demonstrating the gold standard of payment practices and it’s great to see so many of Britain’s leading household names on the list.”