Rosie Winterton, Minister for Regional Economic Development, has urged businesses to sign up to the Prompt Payment Code at her recent visit to Seevent Plastics near Brighton. The Code aims to encourage better payment performance between businesses. Over 750 companies in the South East failed during 2008 because of late payment and the region’s companies will pay over £33m in unnecessary interest charges because of overdue payments this year. Rosie Winterton, Minister for Regional Economic Development said:
‘Prompt payment remains the biggest financial challenge faced by firms and in many cases late payment is the difference between life and death for a business.
‘We are taking this issue seriously, that’s why all government departments have signed up to the Code and are going a step further by paying nine out of ten invoices within ten days. We’re also providing advice and support – 80,000 Managing Cashflow guides have been downloaded since last November. ‘I want to see more companies acting responsibly and paying their invoices promptly and without changing their agreed contractual terms.’
Organisations in both the public and private sector can obtain further information and sign up to the Prompt Payment Code by visiting the Prompt Payment Code website //www.creditmanagement.org.uk/berrguides.htm