Top 100 FTSE Companies Urged to Sign Prompt Payment Code

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Some of the UK’s largest and most successful businesses are being asked to agree on paying their smaller suppliers on time.

The Forum of Private Business (FPB) is asking firms to pay suppliers as laid-out in the terms and conditions set out at the start of their contracts, and without changing payment times later on.

Shadow business secretary Chuka Umunna launched the challenge for the FTSE companies to pay their accounts on time in order to help SMEs stay afloat as the county recovers from recession.

Late payment is shown to have far reaching consequences. Late payments are also causing a ripple effect on over half the businesses in theUK, according to research carried out by Bibby Financial Services. For 1.35 millionUKbusinesses, just one late customer payment can have a large impact on payments to all subsequent suppliers. And, worryingly, for half a million businesses one late payment can affect everyone they do business with.

Only a quarter of the FTSE 100 companies have currently signed up to the voluntary Prompt Payment Code (PPC).

Late Payment is an extremely important issue for small businesses, too many businesses are having to wait for payments which can put even the most successful firms at risk of going under.  The Prompt Payment Code provides an opportunity for responsible businesses to lead by example. 

The team at Forbes Solicitors can provide practical and effective adice in dealing with late payment.

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