Prompt Payment Code

Small Business Minister Margot James and Philip King, Chief Executive of the Chartered Institute of Credit Management have confirmed new measures to support the Prompt Payment Code in a letter sent to the code’s signatories this week.

 

Over 1,800 firms have signed up to the Prompt Payment Code, agreeing to maximum payment terms of 60 days and a target payment time of within 30 days as part of their commitment to the fair and equal treatment of suppliers.

 

Under the code, companies whose payment terms stretch beyond 60 days must be able to demonstrate that exceptional circumstances apply and will be considered on a case-by-case basis.