Govt launches small firm payment code

Date: 11th December 2008

A scheme to ensure business start-ups receive payment for their services on time has been launched by the government.

The code of practice has been drafted by the Institute of Credit Management with the support of a number of larger business organisations.

Under the terms of the code, the department for business, enterprise and regulatory reform is hoping to speed up the time in which it takes bigger firms to pay smaller ones.

Peter Mandelson, business secretary, commented: "The code focuses on ensuring firms pay their suppliers on time and do not attempt to change their payment terms retrospectively.

"This will be essential to help smaller firms maintain cash flow in the months ahead."

Mr Mandelson urged as many business start-ups as possible to sign up for the scheme, and he said would be arranging a meeting for a month's time to track the progress of the programme.

Earlier this week, the Forum of Private Business claimed that high car parking charges and limited waiting times were driving Christmas shoppers away from the high street.