The small business minister Paul Scully today announced changes to the Prompt Payment Code, a voluntary code of practice that larger businesses are encouraged to sign up to. The changes tighten the length of credit that a signatory to the scheme can take from a small supplier. Previously set at 60 days, the maximum is now down to 30 days.
Samantha White, CEO of My Credit Controllers said:
" We applaud this positive move by BEIS and hope that more small companies will see the benefit of better payment terms. We see the damage that late payment can cause on a daily basis to Britains small businesses, a cornerstone of the country's economy. Any move government takes to ensure fair treatment of these companies has to be a good thing. We look forward to more developments as a consequence of the recent consultation. "
The move was also welcomed across the business spectrum. Mike Cherry, The national chairman of the Federation for Small Businesses, Philip King, the Small Business Commissioner and the CBI’s chief UK policy Director Matthew Fell all made statements in support of the changes.
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