The Government has called on businesses to pay suppliers on time and has set out guidelines to help small businesses pursue late payers.
The Business Minister Mark Prisk has created a new working group of business representatives to examine the issues leading to late payments and a guide containing tips and advice has been drafted in collaboration with the Association of Chartered Certified Accountants.
The Get Paid! guide, which can be download at the BIS website, contains advice on issues such as correct invoicing, developing a credit policy and pre-agreed payment terms.
“It is hugely important that all businesses, particularly small firms, establish clear payment terms to ensure they get paid on time and successfully manage their cashflow,” commented Mark Prisk.
“The Government is already setting a strong example by paying 80 per cent of invoices within five days and the Prompt Payment Code is encouraging best practice. What’s more, we have secured the agreement of business representative bodies to come together and establish a prompt payment workshop, to explore these issues more fully and develop business-led solutions. We must continue to promote prompt payment to ensure our small businesses can thrive and grow.”