Prompt payments to help businesses

In a bid to do its bit to help get the country back on its financial feet, Hertsmere Borough Council has signed up to the Prompt Payment Code (PPC).

The PPC is an initiative devised by the government with the Institute of Credit Management (ICM) to tackle late payments and help small businesses especially.

Cllr John Graham, portfolio holder for finance, said: "With the country in recession it is very important that businesses with whom we deal can have confidence in us and know they will be paid within clearly defined terms.

“In addition to signing up to this campaign, we are also prioritising our payments by ensuring that invoices from our local businesses in Hertsmere, whose services and supplies we rely on, are paid before others. This in turn helps to keep cash flows moving and support the local economy."

The PPC champions the importance of paying suppliers promptly and within agreed timescales. Approved signatories undertake to:

Pay suppliers on time

• within the terms agreed at the outset of the contract
• without attempting to change payment terms retrospectively
• without changing practice on length of payment for smaller companies 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 which is communicated to suppliers
• advising them promptly if there is any reason why an invoice will not be paid to the agreed terms Encourage good practice
• by requesting that lead suppliers encourage adoption of the code throughout their own supply chains

Local businesses will benefit from the good practice, not least by getting their payments swiftly.