Advantis are pleased to announce that they are signatories of the Prompt Payment Code.
Set up in 2008, the Prompt Payment Code is a voluntary code of practice for businesses. Its purpose is to set standards for payment practices between organisations and their suppliers. The code is managed by the Office of the Small Business Commissioner on behalf of the Department for Business, Energy and Industrial Strategy.
Organisations that sign up to the Code undertake to pay suppliers on time, within 30 days. They also agree to give suppliers clear guidance on terms, dispute resolution and prompt notification of late payment. They also commit to encourage adoption of the Code throughout their supply chain.
Late or unpaid invoices can lead to a significant problem for small businesses. Currently, £23.4 billion worth of late invoices are owed to firms across Britain, impacting on businesses’ cash flow and ultimate survival. Debt purchase and collection company Intrum’s European Payment Report 2021, which surveyed 11,000 people across 29 countries, found that nearly 80% deem long payment terms and the implications of debtors paying late to be problematic – more so than did 12 months ago. At the same time, 37% said late payments are prohibiting growth, 10% higher than in 2020.
50% of UK respondents to the survey said they had accepted longer payment terms than they were comfortable with, as they did not want to damage client relationships. However, 55% said Covid-19 had motivated them to get better at managing the risk of late payments in their business.
Small businesses account for two-thirds of UK private sector employment and more than half of business turnover. Late payments impact their bottom line, which can hold back investment or job creation and, in the worst cases, lead to job losses and business closures. In the current pandemic climate, the need for invoices to be paid promptly is more prevalent than ever.
Mark Webb, Advantis CEO said:
“We are delighted to have signed-up to the Prompt Payment Code. The pandemic has put cashflow pressure on hundreds of businesses across the UK, many of which are still feeling the strain. Ensuring invoices are paid on time will strengthen supply chains and assist with a swifter economic recovery. As signatories to the code, our suppliers can be confident that their invoices will always be paid on time.”
Advantis are a leading Debt Collection Agency based in Stoke-on-Trent. Specialising in Debt Collection, Early Arrears and Credit Management, they provide solutions for every part of the credit management value chain. For more information about Advantis, visit www.advantiscredit.co.uk