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New figures from ICM show shift in late payment culture

Press Release – 4 March 2013

The Institute of Credit Management (ICM) has published new figures regarding the continued success of its two cashflow initiatives devised and implemented for the Department of Business, Innovation and Skills (BIS).

Managing Cashflow Guides: as at 12:00pm Friday 1st March 2013, more than 426,000 cashflow guides had been downloaded from the ICM website, a rise of more than 50,000 year-on-year. The most popular of the 13 guides is the one giving advice on ‘Payment Terms’ that accounts for nearly 25% of the total.

Prompt Payment Code : as at 12:00pm Friday 1st March 2013, the total number of signatories to the Code stood at 1,334. This figure included: 65 of the FTSE100; 63 of the FTSE250 and 128 of the FTSE350. Latest signatories to the Code within the last month include Britvic, Paypoint and QinetiQ.

Philip King, Chief Executive of the ICM, says that there has been a noticeable shift in businesses’ response to the issue of payments in recent months: “Political and media pressure have no doubt helped to bring the late payment debate out into the open, and that manifests itself in two ways,” he says.

“Firstly, it means that more smaller businesses have been wanting to learn about best practice, hence the surge in demand for our Managing Cashflow Guides; secondly, more of the larger firms have been inclined to sign the Prompt Payment Code as their commitment to paying their suppliers to agreed terms that are fair and reasonable.

“It should always be remembered that the Code is not new ‘legislation’, but rather a commitment to good practices,” he concludes. “While highlighting those who fail to sign up to the Code may indeed find popular support, much more can be gained by encouraging best practice and ensuring businesses have the information and tools they require to develop a mutually beneficial trading relationship.”

Businesses wanting to sign up to the Prompt Payment Code can do so by following this link: www.promptpaymentcode.org.uk

Prompt Payment Code – FTSE 350 signatories