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Prompt Payment – ICM welcomes the pledge from big business

14 May 2009

The Institute of Credit Management (ICM) has welcomed the pledge from big businesses to live up to their word to pay on time and sign the BERR backed Prompt Payment Code.

On Tuesday 13 May, Director General of the ICM, Philip King, attended a breakfast seminar with the Business Minister, Shriti Vadera, and 26 FTSE companies who gave their endorsement to the Code.

Some 11 new high profile companies including Barclays plc, Sony UK, Sky and B&Q have committed to sign the Code, part of a campaign designed to help increase the speed of payments to smaller companies.

Philip King explains: “This is yet further proof that some of the biggest names in UK and world business are keen to be involved in a scheme that will help smaller suppliers stay afloat during these toughest of times.

“With the government’s backing this campaign is gaining real momentum and the list of high profile firms already involved, and others showing an interest is testament to that.”

The Code, developed with the ICM and supported by major business organisations, aims to establish a clear and consistent policy, and a climate of greater certainty in the payment of business to business invoices.  It is being hosted by the ICM on a dedicated website (www.promptpaymentcode.org.uk) and includes a facility for suppliers to raise concerns about late payers.

The Code focuses on three main areas: a commitment to pay suppliers on time; to give clear guidance to suppliers; and to encourage good practice.

On the day of the forum, BERR launched a leaflet in association with the ICM that highlights the benefits of paying on time and why it is important to become a signatory to the Prompt Payment Code. This leaflet is also available on the website www.promptpaymentcode.org.uk.

Business Minister Shriti Vadera adds: “Late payment can be the final straw for small business in the current climate. So the commitment here today by major companies heading up supply chains to pay on time is a win for all businesses.”