The UK Government has tightened up the Prompt Payment Code so that signatories must pay 95% of their invoices from small businesses within 30 days (previously 60 days). Of course this is a move in the right direction, but are small businesses really going to report their largest clients (and risk losing their business) unless they can be assured 100% that they will have anonymity? And where is the incentive for big business to sign up to the code? Whilst having a PPC logo on your website may help the brand reputation somewhat with suppliers, I doubt it will have much effect where it really counts on the sales side. So if the decision for big business is between having cash in the bank for an extra 30 days (so reduced debt), or a logo on the website and a better reputation with suppliers, I think we’ll see many opting for the cash.
original article: https://www.gov.uk/government/news/government-tackles-late-payments-to-small-firms-to-protect-jobs