The prompt payment code - more than just an ethical responsibility

Since the day we incorporated the business in August 2020, we are proud to have always paid our suppliers not just on time, but often days before the invoice due dates. In fact, a quick look through our accountancy software tells me that the average time it takes us to pay a supplier invoice is five working days. For us, it's a simple matter of treating our suppliers with the same respect we wish to be treated. It turns out, however, that there are more benefits in addition to keeping your suppliers happy...

So, what is the Prompt Payment Code and why have we signed it? Here's a description taken directly from the email we received from the Small Business Commissioner in response to our application:

"The Prompt Payment Code (PPC) sets standards for payment practices and best practice and is administered by the Small Business Commissioner on behalf of the Department for Business, Energy and Industrial Strategy (BEIS). The Code covers prompt payment, as well as wider payment procedures.

The Small Business Commissioner is responsible for regulation and governance of the Prompt Payment Code and signatories of the Code. She has the power to determine which companies become signatories and investigate complaints concerning any signatories. These investigations can result in the Prompt Payment Code Compliance Board suspending or removing signatories from the Code.

The criteria for joining the Prompt Payment Code is:

• Pay suppliers on time
• Give clear guidance to suppliers
• Encourage good practice
• Pay 95% of all invoices within 60 days
• Pay 95% of all invoices within 30 days where the supplier is a small business with fewer than 50 employees
• Avoid any practices that have an adverse effect on the supply chain

Paying suppliers or partners promptly and within the agreed payment terms is not only an ethical responsibility but economically beneficial for all parties and the wider economy. Speed and certainty of payment and stable cashflow are essential for all businesses to flourish and grow."

As I said above, paying our suppliers on time - or early - is something we have already been doing since Day 1, so becoming a signatory was an easy decision for us to make. We are continually looking for new ways to prove our commitment to the environmental, social and governance criteria of #OperationRegeneration - our regenerative business journey.

Demonstrate your commitment to prompt payment! Apply to become a signatory to the Code here.