Firms join push for late payers crackdown - Telegraph
Insurers Aviva and Admiral and online price comparison firm, Moneysupermarket.com, were among the businesses that have now agreed to sign the Prompt Payment Code, a voluntary agreement to promote good payment practices.
Philip King, chief executive of the Institute of Credit Management, which runs the PPC, said there had been a “significant increase” in interest in the code among listed companies since The Sunday Telegraph announced its initiative to tackle late payments, which have reached record highs of more than £36.5bn.
The business minister, Michael Fallon, pledged to “go to war” on the issue last weekend, and has written to the chief executives of all FTSE 350 companies threatening to “name and shame” those that failed to sign the PPC.
Companies that have yet to join the code include Unilever, WM Morrison, WH Smith and Home Retail Group, owner of Argos.
Scores of business owners have contacted this newspaper to support the drive to stamp out poor payment practices. Many shared their own difficulties in getting paid for completed work, with larger companies typically the worst culprits.
The owner of a media business, who asked not to be named, said his clients are “booming” yet insist on payment terms of at least 60 days.
“This should be unacceptable. Huge, profitable companies are clearly exploiting their purchasing power to demand credit from small suppliers who often have very tight cashflow. Small companies suffer. This is both morally wrong and bad for the economy.”
He said the fact that one FTSE 100 customer claimed to have an “exemplary” payment record of “between 40 and 60 days shows just how bad the situation has become”.
Insurers Aviva and Admiral and online price comparison firm, Moneysupermarket.com, were among the businesses that have now agreed to sign the Prompt Payment Code, a voluntary agreement to promote good payment practices.
Philip King, chief executive of the Institute of Credit Management, which runs the PPC, said there had been a “significant increase” in interest in the code among listed companies since The Sunday Telegraph announced its initiative to tackle late payments, which have reached record highs of more than £36.5bn.
The business minister, Michael Fallon, pledged to “go to war” on the issue last weekend, and has written to the chief executives of all FTSE 350 companies threatening to “name and shame” those that failed to sign the PPC.
Companies that have yet to join the code include Unilever, WM Morrison, WH Smith and Home Retail Group, owner of Argos.
Scores of business owners have contacted this newspaper to support the drive to stamp out poor payment practices. Many shared their own difficulties in getting paid for completed work, with larger companies typically the worst culprits.
The owner of a media business, who asked not to be named, said his clients are “booming” yet insist on payment terms of at least 60 days.
“This should be unacceptable. Huge, profitable companies are clearly exploiting their purchasing power to demand credit from small suppliers who often have very tight cashflow. Small companies suffer. This is both morally wrong and bad for the economy.”
He said the fact that one FTSE 100 customer claimed to have an “exemplary” payment record of “between 40 and 60 days shows just how bad the situation has become”.
really? wow
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