Prompt payment code welcomed
Subscribers to voluntary code will pledge to pay suppliers on time and within terms of contract
Minister for Small Business John Perry: “Companies providing goods and services need cash flow certainty and are entitled to expect their payments will be made in a timely manner.”
The Irish Small and Medium Enterprises Association (Isme) has welcomed the publication of a new code of conduct for prompt payments, but said big businesses should be forced to adopt the code.
The voluntary code, which is being published by Minister for Small Business John Perry, is a voluntary code developed by the Business Representative Bodies in Ireland, supported by the Department of Jobs, Enterprise and Innovation.
Pay on time
Those who opt to sign the code will pledge to pay suppliers on time, within the terms of contract; give clear guidance to suppliers on payment procedure; and promote adoption of the code.
“The Irish Government is acutely aware of the importance of the small business sector, its potential for generating employment and the many issues currently facing SME’s in Ireland, including the issue of prompt payments,” Mr Perry said.
“Companies providing goods and services need cash flow certainty and are entitled to expect their payments will be made in a timely manner.” The latest survey by Isme on late payments in the small and medium sized sector showed a slight improvement in the time taken for companies to get paid in the second quarter of the year.