Over 1000 companies have already made the commitment to prompt payment for the benefit of their business.

They have signed up to the Better Payment Practice Code which business and government established together in 1998 to help improve the payment culture amongst organisations trading in the UK. The Code is supported by public as well as private sector organisations. Collectively they represent about 20% of UK Gross Domestic Product.

This simple code details the following obligations of a business to its suppliers:

• Agree payment terms at the outset of a deal and stick to them.
• Explain your payment procedures to suppliers.
• Pay bills in accordance with any contract agreed with the supplier or as required by law.
• Tell suppliers without delay when an invoice is contested, and settle disputes quickly.

To see who has signed up to the Code you can find the complete list of current signatories at www.payontime.co.uk.

The Results
"Businesses need to remember that prompt payment can be as beneficial to them as it is to their suppliers. The way businesses manage their purchasing and sales relationships can have a direct effect on their profit margins. A commitment to prompt payment can result in more co-operative partnerships and a better service from suppliers, with more attractive credit terms." Dave Tyler, Fontasia Ltd, Better Payment Practice Code signatory.

There are wider results too. By working together to change a culture of late payment, businesses that pay promptly are keeping existing suppliers healthy, encouraging new suppliers and helping to make the UK economy more competitive in the world market.