“`html
Over 400 UK enterprises have been formally acknowledged by the government for settling their suppliers promptly and justly, as part of the Fair Payment Code, a program managed by the Office of the Small Business Commissioner.
The code, initiated in December 2024, is part of a national effort to address Britain’s late-payment culture, which costs the economy £11 billion annually and contributes to the closure of an estimated 14,000 small enterprises each year — the equivalent of 38 businesses daily.
This achievement signifies a growing trend among large and mid-sized companies to enhance cash flow throughout supply chains, especially as small businesses continue to confront high borrowing costs and narrow margins.
The Fair Payment Code Awards honor organizations that exhibit clear, transparent, and trustworthy payment practices. Recipients agree to adhere to three fundamental principles: to be Clear, Fair, and Collaborative with their suppliers.
To be eligible, enterprises must present detailed proof of their payment behaviors, confirmed through a stringent evaluation process. There are three tiers of awards, based on invoice payment performance:
• Gold Award – for companies paying at least 95% of all invoices within 30 days.
• Silver Award – for those paying at least 95% within 60 days and 95% of invoices to small firms within 30 days.
• Bronze Award – for businesses paying at least 95% of all invoices within 60 days.
Each award remains valid for two years, after which organizations must reapply and undergo reevaluation.
Applications for the upcoming round of awards are currently open, with companies encouraged to apply between September and December to secure a full two-year recognition duration.
Emma Jones (depicted), the UK Small Business Commissioner, stated that this achievement demonstrates the increasing desire for responsible business practices and the broader advantages of a positive payment culture.
“It is wonderful to commemorate this milestone for the Fair Payment Code with enterprises throughout the UK,” Jones remarked.
“Awardees are pioneers in equitable and swift payments, facilitating cash flow through the economy and promoting growth in supply chains. However, this is merely the beginning — I wish to see more enterprises applying to the Code so we can keep fostering a constructive payment culture where timely payments are just seen as the ethical course of action.”
Jones emphasized that timely payments are especially vital in a challenging economic landscape, where small and medium-sized enterprises (SMEs) often serve as the backbone of supply chains yet lack the liquidity to handle delays.
Among the businesses acknowledged under the code are prominent financial organizations, including NatWest Group, which has attained Gold Award status.
Ken McHugo, Head of Supply Chain at NatWest Group, remarked that the honor reflects the bank’s duty to exemplify good practices for its business clients.
“NatWest Group is the largest supporter of businesses in the UK, with over 1.5 million clients — from start-ups and SMEs to multinational corporations,” McHugo stated.
“We understand firsthand from our business banking clients how crucial prompt payments are to cash flow, success, and expansion. By achieving Gold Award status on the Fair Payment Code, we’ve displayed our dedication to aiding suppliers through efficient payment systems.”
The UK’s late-payment dilemma has long been a source of annoyance for smaller enterprises. According to recent research conducted by the Federation of Small Businesses (FSB), one in four small businesses experiences late payments from larger clients, while 37% identify late payments as their top financial obstacle.
The Fair Payment Code, along with the Prompt Payment and Cash Flow Review, is part of the government’s extensive strategy to foster a “fairer, faster payment culture,” ensuring that businesses are compensated for their efforts without undue delays.
As more firms commit to the Code, officials hope to establish a benchmark for best practices that encourages accountability across all sectors — from construction and retail to finance and technology.
“Ensuring that money flows quickly through the economy is essential,” Jones concluded. “When businesses receive payments on time, they can invest, hire, and grow — benefiting everyone.”
Source link
“`
