Prompt Payment Code not working

June 10, 2015
A BBC article which details how the scheme to ensure payments to small companies is ‘not working’. Unfortunately, small business is always going be under pressure from bigger businesses to provide ‘favourable’ credit terms in return for their treasured business.  It’s a way of small companies bank-rolling larger businesses. Perversely, it’s the larger ones who are more likely to be able to get bank funding.

It’s important when entering any new business relationship to ensure it will work for you. If your potential new client insists on 90 day terms, can you survive that long (and potentially longer) without being paid? If not, you need to negotiate better terms or walk away. Not easy to do if you have a big client interested in your goods or services.

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