1. What are the terms of the Code?
Public supporters of the code commit to:
Paying SME suppliers on time
Within 30 days once the final valid and compliant invoice is received or on agreed payment terms.
Without attempting to change payment terms retrospectively.
Without changing practice on length of payment on unreasonable grounds.
Giving clear guidance to SME suppliers
Providing SME 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.
Encouraging good practice
By promoting the Prompt Payment Code throughout their own supply chains.
2. Does the Prompt Payment Code have any legal force?
The Prompt Payment Code (PPC) is a commitment to making a difference to the SME sector, not a legally enforceable obligation.
3. What happens if a leading organisation doesn’t pay a long overdue invoice?
The National Media Committee of the Prompt Payment Code will investigate. If it is clear that the payment is due, the organisation will be approached for immediate payment. If the payment is not released within seven working days, a statement will be released to the National Media. This will also receive enormous exposure on social media.
4. Who is behind the Prompt Payment Code?
The National Small Business Chamber (NSBC) and the National Media.
5. Who can become a public supporter of the Prompt Payment Code?
It is open to the large private, public companies and government bodies that makes payments to SME suppliers. The beneficiary of the code is the SME sector.
6. Why is it so important to support and adhere to the Prompt Payment Code?
When you adhere to the Prompt Payment Code you are making a statement about your organisation's commitment to your SME 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.
7. What are the benefits in becoming a public supporter of the Prompt Payment Code
If you pay promptly, then it's a real benefit to your SME suppliers and potentially to your customer as you could benefit too by receiving more favourable pricing terms which could make you more competitive.
You will also be continually exposed by the NSBC and National Media as a committed supporter of the Prompt Payment Code. Your support will receive incredible exposure.
When you adhere to the code, you are committing to:
Paying your SME suppliers within 30 days once the final valid and compliant invoice is received or on agreed payment terms.
Having clear processes in place for your suppliers.
Managing and resolving disputes as quickly as possible.
Encouraging your customers and suppliers to sign up to the Code.
Once you adhere to the code you can forward your commitment/press release to the National Media Committee of the Prompt Payment Code for ongoing publishing – email@example.com
8. What if big business and government ignore the Prompt Payment Code by not paying their SME suppliers timeously?
The National Media will expose these organisations to the nation, highlighting how these organisations are negatively affecting the all-important SME sector, the mainstay of our economy.
9. How do you become an NSBC Partner?
To become an NSBC Partner, please e-mail: firstname.lastname@example.org for further details.