Business leader believes late payment can be overcome
Press Release – 9 December 2013
ICM responds to news of BIS consultation ‘Building a responsible payment culture’
A leading business organisation has urged firms to engage with the Government’s new consultation on late payment and consider further ways in which existing initiatives such as the Prompt Payment Code (PPC) can be made more effective.
But alongside ‘new’ thinking, the Institute of Credit Management (ICM) says that businesses should be and could be doing more to focus on ‘established’ principles of good credit management to better manage their cashflow.
“Of course late payment is an issue, and one that has exercised the minds of businesses and government even more so in recent times,” says Philip King, Chief Executive of the ICM. “But in many ways the ‘silver bullet’ – good credit management – already exists.
“If, through this consultation, we can take the need and appetite to change the culture and attitude to late payment and match it with sound, practical steps that companies can take to protect their cashflow, then we can make a real difference in preventing this often pernicious practice.”
The Prompt Payment Code is hosted and administered by the ICM for the Department of Business, Innovation and Skills (BIS). To date it has attracted more than 1,500 signatories of firms committing to paying their customers to agreed terms.
“What is critical is the certainty of payment, more than being caught in arguments over 30 or 60 day terms,” Philip concludes. “Businesses that sign up to the Code effectively sign up to the ethos of treating their suppliers fairly.
“We need to understand that ‘Building a responsible payment culture’ – the Government’s ambition and the name of its consultation – requires businesses to respond, and I would urge all companies, large and small, to ensure their voices are heard.’
Please click here to read the consultation and provide your comments.
The Institute of Credit Management (ICM) is Europe’s largest credit management organisation, and the second largest globally. The trusted leader in expertise for all credit matters, it represents the profession across trade, consumer and export credit, and all credit-related services. Formed over 70 years ago, it is the only such organisation accredited by Ofqual and it offers a comprehensive range of services and bespoke solutions for the credit professional (www.icm.org.uk) as well as services and advice for the wider business community, including the acclaimed ICM/BIS Managing Cashflow Guides.
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