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Two thousand companies sign Prompt Payment Code

Monday 7th August, 2017

The Chartered Institute of Credit Management (CICM) says that the Prompt Payment Code (PPC) is having a demonstrable impact on improving the payment practices of larger firms.

As the Code registers its 2,000th signatory, CICM points to a series of recent announcements from supermarkets and other large suppliers to change their payment terms as a victory for the Code.

32 of the biggest suppliers to the Government have also voluntarily committed to pay 95 percent of invoices within 60 days and to work towards adopting 30 days as the norm.

With almost three quarters of the FTSE100 now signed up to the Code, Philip King, Chief Executive of the CICM, says that the initiative continues to gain momentum and credibility: “It is important that businesses large and small recognise the Code as a tool that can help improve payment practices and the understanding of the supply chain.”

Mr King’s comments coincide with the latest data from Bacs that shows that overall late payment debt has fallen considerably since the Code was introduced. Figures reveal that UK SMEs are owed £14.2bn in contrast with five years ago when the total was more than double, at £30.2bn.

"This is undoubtedly good news," Mr King continues. "The Code is one of a series of measures introduced in recent years to address the late payment challenge, and while this latest news should be welcomed, there is still a long way to go."

Margot James, Minister for Small Business, says the Prompt Payment Code continues to go from strength to strength: "Unfair payment practices have no place in an economy that works for all. The Prompt Payment Code is a big step forward in eliminating these behaviours and improving relationships between big businesses and their smaller suppliers."

"It is heartening to see that so many businesses have committed to treating their suppliers fairly and equitably, and I look forward to seeing the number of signatories continue to rise."

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