The Government has launched a new code of practice aimed at increasing the speed of payments to small businesses. The Prompt Payment Code, which was developed in partnership with the Institute of Credit Management, focuses on three main areas: a commitment to pay suppliers on time; to give clear guidance to suppliers; and to encourage good practice.

Large companies have now been urged to sign up to the agreement to help alleviate the burden of late payment on small enterprises.

‘Businesses now need to pick up the baton and ensure that the principles of fairness, timeliness and clarity are applied to their own contractual relationships with smaller suppliers,’ said the Institute of Directors.

Is late payment a problem for your firm? If so, contact us today to arrange a business planning review.