Big businesses must pay small suppliers more quickly under changes to PPC

20 Jan 2021

Large businesses must now pay their smaller suppliers more quickly under changes to the UK's Prompt Payment Code (PPC).

Big businesses signed up to the PPC must pay small firms with fewer than 50 employees within 30 days instead of the previous 60 days. The Code currently has more than 2,800 signatories.

The Federation of Small Businesses (FSB) recently revealed that almost 50,000 small firms have to close each year because of late payments. According to the FSB, the issue has become more prevalent as a result of the coronavirus (COVID-19) pandemic.

Commenting on the matter, Philip King, Interim Small Business Commissioner, said: 'Late payment causes real hardship to small businesses, and the issue is more prevalent than ever due to the continued impact of the pandemic.

'Code signatories of all sizes demonstrate their commitment to ending the culture of late payment and helping to increase business confidence.'

Southampton Office

12-14 Carlton Place
Southampton
Hampshire
SO15 2EA

Tel: 02380 234 222

Winchester Office

6 Charlecote Mews
Staple Gardens
Winchester
SO23 8SR

Tel: 01962 842000

Reading Office

3 Richfield Place
Richfield Avenue
Reading, Berkshire
RG1 8EQ

Tel: 0118 9511 115

London Office

90 Long Acre
Covent Garden
London
WC2E 9RZ

Tel: 0203 470 0777