Prompt Payment Code
The Prompt Payment Code requires firms to commit to pay 95% of supplier invoices within 60 days. Last year, several notable names in the construction industry were suspended from the code for failure to comply with this commitment. Whilst some companies have substantially improved their timely pay, we know delayed payments remain a major issue and strain on cash flow.
In July, subcontractors were again let down on their expected payments from Galliford Try, who have been suspended from the PPC previously.
With uncertain financial times upon us, this is a risk we all need to be prepared for with a plan to mitigate in place. A worthwhile investment to consider is Credit Insurance which will provide the reassurance that you are safe guarding your business from the risk of bad debt and knowing that should you have a problem supplier; your loss will be protected.