Government backed Prompt Payment Code to recommend 30 day terms as standard
Business Minister Matthew Hancock has announced changes to the Governments Prompt Payment Code that seek to promote 30 day terms as standard and create a 60 day maximum limit. Full story: http://ow.ly/JGb25
Whilst it is good news that the Government is taking action to promote fair payment terms, that particularly affect small businesses, the worst offenders are unlikely to have signed up to the Prompt Payment Code as it is a voluntary scheme. However, the action does hopefully start to move payment culture closer towards a point where overly long payment terms are no longer an acceptable practice.
– 30 day terms recommended by change
– 60 day terms set as a maximum not to be exceeded (except in rare circumstances)
– 1,700 businesses have to far signed up to the PPC