Developments this week to the Government’s Prompt Payment Code have been announced. The Code, there to ensure prompt payment for small businesses, has had changes made to its contractual payment terms citing a new ‘within 30 days’, down from the current 60 days, as from July 2021.
Corporation heads, who have signed up to the Code (3,000 at time of going to press) have been instructed that they must pay smaller suppliers within 30 days as from the middle of this year. Breaking these contractual terms will see small suppliers allowed to add interest to unpaid invoices, as well as the offending larger companies risking investigation.
What’s more, failure to pay 95% of their small suppliers will see companies rejected from the Code. If this happens, they will also risk being publicly ‘named & shamed’.
Last year, late payment offenders included Prudential, BAE and Shell who all were suspended from the Prompt Payment Code as they exceeded the current 60 payment terms.
This late payment problem has to stop. It is wrong. It is unfair. It is not ethical.
Late payment must not be taken lightly
Small suppliers are left extremely vulnerable when they experience late payment. As a result, this is why, particularly in this difficult time, the Government is upping the pressure on offenders. Small suppliers cannot build a robust cashflow when payment can exceed 60, 90 days +.
Thankfully, with the Prompt Payment Code, aided by an invoice finance facility, SMEs can protect themselves from the damaging effects late payment has on their business. If their customers sign up to the Code there is some protection, yet if they surpass the 30 days, or have other customers who have not signed up to the Code, then invoice finance offers a robust cashflow solution.
SMEs can further bolster the positive effects of the Prompt Payment Code with Invoice Finance
That’s why many, now more than ever, are turning to invoice finance – it brings a robust and proven answer to cashflow woes and protects against late paying customers to offer financial stability and peace of mind.
SMEs are the backbone of the UK economy
The UK rely on SMEs. Yet how can they thrive and prosper when most are simply not paid on time? They waste time that could be used for growth and expansion either chasing their own customers or being chased by their own suppliers, damaging their credit rating through no fault of their own.
The burden of late payment is all too real:
FACT: The Federation of Small Businesses states that 50,000 small businesses will fail this year as a direct result of suffering the ill effects of late payment.
It’s little wonder over 44K UK businesses are using invoice finance
And you too can join them, with your facility fully operational in just a matter of weeks.
Arrange your invoice finance TODAY!
Call me direct, on 07785 596053 or email me at carole@capitalcorporate.co.uk
It’s quick and it’s easy to set up with my help
As an expert witness in the invoice finance market, helping to bring the finance facility to the UK decades ago, I am best placed to arrange your SME finance facility.
My independent broker status gives me access to the entire UK invoice finance market – over 50 providers – with fast track and preferential privileges.
Call me today to have your facility arranged and set up within weeks!
My direct line is 07785 596053 or email me at carole@capitalcorporate.co.uk
No charges to arrange your invoice finance facility
And remember, as I am an independent broker, there are no charges to arrange your facility – I am remunerated directly by the provider, without any hidden costs or charges applied to your facility.
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