Call for businesses to pay fair

The Minister urged businesses to sign up to the Prompt Payment Code, which aims to encourage better payment performance between businesses. Regional Minister for the South East, Jonathan Shaw, will also write to local councils, public sector bodies and business groups in the region to encourage them to sign up to the code.

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.

Visiting Seevent Plastics - one of over 350 companies that have already committed to the code - 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.

“Seevent are a great example of good business – they manage their own cash flow and ensure they pay suppliers on time. That’s why I’m here in Lancing to encourage more companies to follow their example and sign up to the Prompt Payment Code”

Ken Fisher, Managing Director of Seevent said:

“”We at Seevent believe that the payment of invoices on time is a major part of the contract between supplier and customer. The customer rightly complains if his goods are late in arriving and therefore should honour his part of the contract by paying on time. At Seevent we pride ourselves on our payment record”

Pam Alexander, Chief Executive of the South East England Development Agency said:

"SEEDA is working in close partnership with the Government on the Prompt Payment Code. This issue has been a high priority for the South East Economic Delivery Council and all partners are committed to addressing it - both for public sector contracts and in working with major corporates through the business membership organisations on the Council.

“SEEDA backs the Prompt Payment Code and we have worked very hard to ensure we pay our own suppliers as quickly as possible to keep cash flow moving during the recession. We are currently paying 96% of uncontested invoices within 8 days, so our money is in supplier bank accounts within 10 days."

Organisations in both the public and private sector can sign up to the Prompt Payment Code by visiting www.promptpaymentcode.org.uk

www.ukba.co.uk