|
The changes to the Prompt Payment Code have introduced a requirement that 95 per cent of invoices covering small firms (less than 50 employees) will be cut from 60 to 30 days.
- introducing an added requirement that 95 per cent invoices from small businesses (with less than 50 employees) must be paid within 30 days
- confirming the requirement to pay 95 per cent invoices within 60 days
- requiring small and medium sized signatories to report annually on their payment performance, on a comply of explain basis
- promoting and strengthening the Code website
- requiring signatories to recognise the right of suppliers to charge late payment interest and charges if an invoice is paid late without justification
- stating that applications to join the Code must be signed by the Chief Executive, Finance Director or, in the case of smaller businesses, the company owner
- suppliers should be provided with a contact point for payment queries.
Advertisement 
“At Beard, prompt payment is the cornerstone of our relationship with suppliers; we have always felt it is right to make a fair margin for the work we do, but only after we have honoured our commitment to our loyal supply chain.
“Halving the payment terms to 30 days for SME suppliers will not only provide greater protection to the supply chain, but also help drive efficiency across the industry, minimize stress for suppliers, the individual tradesmen who work for them and the site teams who manage them.
“Ultimately, we would like to see this go further and apply the 30-day rule to all suppliers, not just SMEs, but this is a good first step and we hope it will be effectively enforced.”
--
If you wish to comment on this article, please log in and use the Reply button below. Registering is free and easy - see 'Join Shout99'.
-
Susie Hughes © Shout99 2021
|
