1. What are the terms of the Code?
Signatories to the code commit to:
Pay suppliers on time
Within 30 days once the final valid and compliant invoice is received.
Without attempting to change payment terms retrospectively.
Without changing practice on length of payment on unreasonable grounds.
Give clear guidance to suppliers
Providing suppliers with clear and easily accessible guidance on payment procedures.
Ensuring there is a system for dealing with complaints and disputes
Advising within 7 days if the invoice is incorrect.
Encourage good practice
By promoting the code throughout their own supply chains.
2. Does the Code have any legal force?
The Prompt Payment Code is a commitment, not a legally enforceable obligation.
3. Who is behind the Code?
The National Small Business Chamber (NSBC) – South Afica's largest organisation representing the interests of the SME sector. www.nsbc.africa.
4. Who can sign up to the Code?
It is open to any corporate, (private or public company) and government body that makes payments to SME suppliers. The beneficiary of the code is the SME sector.
5. How can signing the Prompt Payment Code help
When you sign up to the Code, you are making a statement about your organisation's commitment to suppliers. You are agreeing to pay on time (unless there is a dispute), making it easier for your supplier to manage their cash flow and helping them to remain in business. It's a statement about your business ethics and you’re allowing your suppliers to measure your actions against your words.
6. What are the benefits in becoming a signatory to
If you pay promptly, then it's a real benefit to your supplier and potentially to your customer as you could benefit too by receiving more favourable pricing terms which could make you more competitive.
When you sign the Code, you are committing to:
Pay your SME suppliers within 30 days once the final valid and compliant invoice is received.
Have clear processes in place for your suppliers.
Manage and resolve disputes as quickly as possible.
Encourage your customers and suppliers to sign up to the Code.
Once approved, you can use the PPC logo on your documentation and website to show that you are serious about good payment practice.
7. How will we know we have been accepted?
Once we have received your online application, you will receive an email confirming your successful application together with the PPC logo.