Without proper processes and the right technology in place, the Prompt Payment Code remains nothing but pie in the sky for many organisations
The Prompt Payment Code has been around for a few years now, setting out principles for businesses to follow when dealing with and paying their suppliers. To date, around 1800 businesses and public authorities have committed to the PPC.
I believe Prompt payment can make all the difference to small businesses, boosting their cashflow and allowing them to invest in growth for the future. Although we have seen some progress, there are still too many business owners across the country who have not been paid on time by their customers.
Margot James, Minister for Small Business, says: “We need a culture change to stamp this out and the Prompt Payment Code continues to play an important role in bringing this about, alongside a package of measures taken forward by government and industry.”
A culture change. That’s an interesting term. I believe the Minister is probably right, we do need a culture change. The mindset of some businesses will need to change and peer pressure through culture change is one way to do this. However, we need more than that if the Prompt Payment Code is going to become widespread.
To say “we need a culture change to stamp this out” is fighting talk, but it also suggests that organisations are not complying with the Code only because they don’t care about paying late. Which is simply not true. What if there was a solution?
Read the full article at The Paypers.
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