26 May 2009
Eleven more companies including British Airways, Sony UK and Sky have agreed to sign the government's Prompt Payment Code following a meeting with business minister Shriti Vadera.
Another 10 companies "committed in principle" to join the code, which calls for companies to settle supplier invoices within a contractually agreed time and not make retrospective changes to payment terms.
CIPS chief executive Simon Sperryn said the increase was encouraging. Prompt payment was "good commercial practice", he said, embedded in the CIPS code of ethics and part of maintaining the health of supply chains.
"The lack of cash flow is responsible for many insolvencies and with the current short supply of credit, suppliers - especially SMEs - are at even greater risk from non-payment than usual," he said.
"I urge all members to ensure that their organisations meet the payment terms agreed with suppliers."
As SM went to press, 180 organisations had signed up to the code, of which half had been fully approved.