The Chartered Institute of Credit Management (CICM) will be putting new rules for the Prompt Payment Code (PPC) into effect on September 1st 2019 which aim to protect SMEs from late payments.
Companies could be blocked from bidding for government contracts worth over £5m if they fail to pay 95% of their invoices within 60 days.
Tim Boag, group managing director of business finance at Aldermore (pictured above), stated that the government initiative would help “increase accountability” and support the SME community.
“This is a huge step in the right direction of finally tackling the issue of late payments,” said Tim.
“On average, a business suffering from late payments will be owed £34,000, our research found.
“This unpaid debt can be the difference between being able to pay an employee’s salary or pursue a new business opportunity.
“We hope we see further action taken to ensure prompt payment for all suppliers.”
SIGN UP TO OUR NEWSLETTER TO RECEIVE MORE NEWS LIKE THIS STORY
Redwood Bank launches new business savings bond
Redwood Bank has launched a new one year business savings bond with a rate of 1.62%...
OakNorth Bank completes seven-figure debt finance deal
OakNorth Bank has provided independent advisory firm Dow Schofield Watts with a seven-figure debt finance facility to make a strategic investment in Camlee Group...
Starling Bank raises £60m and gives shares to employees
Starling Bank has revealed that it has raised £60m from its existing investors Merian Global Investors and JTC...
Cash costs time for SMEs — how can banks help?
Cash is still king for businesses up and down the country; businesses that must essentially be flexible to consumer preferences...
SB to host filmed roundtable on how specialist banks aim to utilise technology in 2020 and beyond
Next week, Specialist Banking will host its sixth filmed roundtable event in association with Watson Farley & Williams...
Aldermore names Tim Boag as group managing director
Aldermore has named Tim Boag (pictured above) as its new group managing director of business finance...
Aldermore’s outlook for SMEs in 2020
As we enter 2020, it’s worth reflecting on how the economic landscape in which UK small businesses currently operate in is changing...
Cynergy Bank opens first Scottish office
Cynergy Bank has opened its first Scottish office in Edinburgh...
Shawbrook Bank launches new business savings products
Shawbrook Bank has launched two new business savings products and enhanced a third to strengthen its portfolio...
Shawbrook names first head of fintech strategy and commercialisation
Shawbrook Bank has named Stuart Doignie (pictured above) as its first head of fintech strategy and commercialisation...
FCA requests further information about overdraft pricing
The FCA has asked major banks to provide evidence of how they arrive at pricing decisions for overdrafts...