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Businesses should use Challenge process to resolve late payment

27 February 2017

Disgruntled businesses owed money by the Ministry of Defence should channel their complaints through the Prompt Payment Code if they want a speedy resolution.

Philip King, Chief Executive of the Chartered Institute of Credit Management (CICM), says he is disappointed that not a single business reported in the press at the weekend had sought redress through the Code’s challenge process, despite its success in resolving issues in the past.

He believes that greater promotion of the Code, of which the MoD is one of almost 2,000 signatories, is needed as an immediate fix to some of the current late payment issues: “The Prompt Payment Code is an established mechanism for dealing with late payment, but not enough people know about the challenge process to keep signatories in line,” he says.

This, he continues, comes down to a simple matter of awareness: “Challenges against Code signatories have been hugely successful in achieving fast settlement of invoices, creating dialogue between parties, improving contract terms, and providing constructive assistance welcomed by suppliers and signatories alike. But much more needs to be done to get that message across.”

The Prompt Payment Code is administered by the CICM on behalf of the Department for Business, Energy and Industrial Strategy (BEIS). Each signatory commits to best practice in the fair and equal treatment of suppliers, many of whom are smaller businesses. Most recent signatories include Virgin Media, Arqiva, and South West Highways.

Last year the Government announced a series of measures within the Small Business, Enterprise and Employment Act to further strengthen the Code, as well as the appointment of a new Small Business Commissioner:

“We hope that the commissioner makes the Code a priority in the Government’s ambition to make a lasting change in payment culture for businesses of all sizes,” he concludes.

PROMPT PAYMENT CODE

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For further press information, please contact:

Sean Feast or Alex Simmons – Gravity Public Relations

0207 330 8810, email mediaenquiries@cicm.com

About CICM:

The Chartered Institute of Credit Management (CICM) is the largest recognised professional body in the world for the credit management community. Formed over 75 years ago, the Institute was granted its Royal Charter in 2014.  Representing all areas of the credit and collections lifecycle, it is the trusted leader and expert in its field providing its members with support, resources, advice, and career development as well as a networking and interactive community. In addition to its comprehensive suite of qualifications and learning opportunities, events and magazine ‘Credit Management’, the CICM administers the Prompt Payment Code for BEIS. Independently, and through collaboration with business organisations, it provides vital advice to businesses of all sizes on how best to manage cashflow and credit.

Twitter: www.twitter.com/CICM_HQ

Web: http://www.cicm.com