The Small Firms Association (SFA) is partnering with the Government on the new Prompt Payment Code Portal, which was officially launched yesterday by the Minister for Small Business, Pat Breen TD.

The Minister met with the Prompt Payment Code Stakeholders to discuss the importance of paying on time and launched a public campaign to promote awareness of the Prompt Payment Code (PPC) and encourage membership among businesses in Ireland.

By signing up to the Code and displaying the PPC Seal received upon registration, businesses are sending out a clear signal to their suppliers, and any potential suppliers, that they pay their bills on time.  Signatories to the Code also commit to best practice by giving clear guidance to their suppliers on their payment and dispute resolution procedures and by encouraging adoption of the Code through their own supply chains.

As part of the Awareness Campaign a new PPC portal has been developed where, in addition to signing up to the Code, businesses can also find information and advice on prompt payment.  The new PPC portal which is maintained jointly by the Department of Jobs, Enterprise and Innovation and the Irish Institute of Credit Management (IICM) also contains a streamlined sign up process where businesses can now sign up to the Code in less than two minutes.

Speaking at yesterday’s campaign launch, Minister Breen said, "We all know how important cash flow certainty is for companies and, in particular, for SMEs.  It can mean the difference between staying in business and going under. Few things can threaten the survival of a small business more than late payment.  It can affect its ability to pay bills, salaries and other operating expenses."

He added, "Paying on time is the right thing to do.  Signing up to the Prompt Payment Code and committing to do this is the right thing to do.  And I believe that if businesses do the right thing and sign up to the PPC, this important prompt payment initiative can make a real difference in addressing the culture of late payment in Ireland."

Surveys from the SFA show that cashflow management is consistently among the top risks identified by small businesses in Ireland. On average, it takes 62 days for a small firm to get paid, even though the majority of contracts offer credit terms of just 30 days. The Association has warned that this culture of late payments makes it difficult to pay staff and suppliers, it requires firms to extend overdraft facilities and consumes a great deal of management time. 

Source: www.businessworld.ie