Large companies are being told to speed up payments to small suppliers via the new government PPC Prompt Payment Code directive.
The new initiative has been designed to eradicate poor admin practices, support small business resilience and accelerate economic recovery. There are £23.4bn worth of outstanding late invoices waiting to be paid at the time of writing this.
How will it work? Companies who have signed up to PPC will have to pay small businesses within 30 days. The current code stipulates 60 days. It is a voluntary code and to be eligible you will have to commit to 95% of your invoices being paid on time.
Why do you need to know this? At IMS we are helping our clients to uncover methods of creating greater accuracy and speed in payment processes, and improved company/supplier information communication practices.
Unsure about any of these areas? Speak with IMS on 0845 1308499 for further information.