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ICAEW and ACCA have given their backing to a government scheme designed to promote good payment practice and improve supply chain cashflow for UK companies.
Along with 12 other members of the Small Business Economic Forum (SBEF), including the CBI, Federation of Small Business and the IOD, the institutes have agreed to advise their members to sign the Prompt Payment Code (PPC).
Around 1,100 businesses have already indicated their support for the PPC, which is a voluntary scheme to tackle the problem of late payments. Independent analysis by Experian suggests that current signatories to the PPC represent over 60% of total UK supply chain value.
The SBEF members have agreed to work together to develop new measures to ensure that payments are secured and made on time. These include telling their members to proactively agree payment terms before delivering orders, raising complaints over late payment from PPC signatories and using legislation already in place to pursue late payers. They are also promoting the advice in Get Paid!, a guide for small businesses produced with help from ACCA.
Business and Enterprise minister and chair of the SBEF Mark Prisk said: 'This is a significant step forward. We mustn't be complacent and stop here but I hope to see businesses across the country joining us to help ensure payments are reaching suppliers on time. ’
Prisk added: ‘We mustn’t be complacent and stop here but I hope to see businesses across the country joining us to help ensure payments are reaching suppliers on time.’
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