The Prompt Payment Code (PPC) was created by the UK government in 2008 in response to a call from businesses for a change in payment culture. It established a set of principles for businesses when dealing with and paying their suppliers that commit them to paying on time and fairly.

Ethical business practices including maintaining trust within our supply chain are vital to our sustainable operations. Treating our suppliers with respect and ensuring payments are released in accordance with agreed terms is an essential part of encouraging organisations to do business with us.

The PPC is administered by the Small Business Commissioner on behalf of the Department for Business, Energy and Industrial Strategy (BEIS). The Code covers prompt payment as well as wider payment procedures.

Becoming a signatory of the PPC benefits both suppliers and customers and is fundamental to bringing about a culture change in late payment as well as boosting the economy and protecting small business owners who often feel much of the brunt of late payments.

Roger Marshall, Managing Director at Bradburys explained why it is important for the company to support the Prompt Payment Code, “The negative economic impact of poor payment practice is often an inherent practice adopted by many organisations across with little-to-no consideration being given to the huge financial impact that late payments have upon suppliers. Small businesses owners often feel pressured to accept regular late payments for fear of speaking up and potentially jeopardising contracts. At Bradburys, we are big believers in rewarding loyalty with loyalty and the least we can do is pay our suppliers and partners on time”.

We 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

We give clear guidance to suppliers

• providing suppliers with clear and easily accessible guidance on payment procedures
• advising them promptly if there is any reason why an invoice will not be paid to the agreed terms
• ensuring there is a system for dealing with complaints and disputes which is communicated to suppliers

We encourage good practice

• by requesting that lead suppliers encourage adoption of the code throughout their own supply chains