July 19 2019
The Chartered Institute of Credit Management (CICM) has suspended 18 companies from the Prompt Payment Code for failing to honour their commitment to pay 95% of suppliers within 60 days. The Code is a voluntary scheme administered by the CICM on behalf of the government.
The following companies were suspended:
This development comes on the back of 17 companies that were removed from the Code in April, including names like Rolls Royce, DHL, GKN, SSE, Vodafone, Balfour Beatty, British Sugar and Twinings.
In response to the suspension of these companies, Small Business Commissioner Paul Uppal said:
“ Large companies who are not currently meeting the Code Standards need to note their unethical payment practices will not be tolerated. The suspension of those who are failing to meet their obligations demonstrates Government is committed to ensure small businesses are treated fairly. “
Analysis of the payment practices of large companies published by My Credit Controllers has drawn attention to the fact that signatories to the code are, on average, worse that other companies at paying their suppliers quickly.
Samanta White, CEO of My Credit Controllers commented:
“ This announcement appears to show that the Prompt Payment Code is starting to take seriously criticisms levelled at it in the past that companies could just sign up and carry with poor payment practices as if nothing had happened. We welcome that the embarassment suffered by these brands serves as an example to other large companies that make their small suppliers wait excessively for payment. “
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