Prompt payment to suppliers
The GBC requires businesses to sign the government’s Prompt Payment Code.
What it is
The Prompt Payment Code sets standards for payment practices and best practice and is administered by the Chartered Institute of Credit Management on behalf of the Department for Business, Energy and Industrial Strategy. 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.
Code signatories undertake to:
- Pay suppliers on time
- Give clear guidance to suppliers; and
- Encourage good practice
Signatories undertake to pay suppliers with a maximum of 60 days and work towards adopting 30 days as the norm.
Why it matters
Paying promptly shows respect to your suppliers and treats them as you would wish to be treated. It is particularly important where your suppliers are small businesses where late payment can be hugely damaging for them. You could also benefit by receiving more favourable pricing or service which could make you more competitive.
You will be asked if you have signed the Prompt Payment Code. If you have not, you will be expected to do so within three months.
To apply to become a signatory of the Prompt Payment Code, see here:
Good Business Charter
Take the first step now and sign up with us today. If you receive accreditation to the GBC, membership will be FREE for the first year.