It pays to be on the Code

It has been a big week for the Fair Payment Code, seeing the largest number of companies ever enrolled in a day with a record-breaking 28 new entries on Tuesday, delivering a total of 750 best in class companies on the Code by last night. Congratulations to you all. This newsletter offers an update on the Code and shows how to make the most of being on it.

Government backed quality mark

Think of what the Red Tractor says about the quality of farm produce, and the Fair Payment Code is the payment equivalent, being a public display of how well a company pays its suppliers. The Code is now a trade-marked asset and, with its endorsement from the Department for Business, Innovation, Science and Trade, is the official quality mark for businesses that want to showcase speedy payment.

Low friction application

Businesses of any size can join the Fair Payment Code and we are always working to smooth the application process as we know time is precious. After submitting an Expression of Interest you will be asked for evidence of your payment times and for two client references. The Fair Payment Code team can help you with securing information and this should get even easier as we work with the major cloud accounting platforms to enable submission to the Code at the click of a button. We have opened up the Code to semi-public bodies meaning organisations like Universities and Housing Associations can also now apply.

Getting money moving

Businesses on the Code are seeing the benefits. Companies are winning new work with clients in the public and private sector on account of showing sound management, employees like working for companies that pay suppliers on time, and for larger companies that process a high volume of invoices, it can lead to cost reduction. By way of one example, Amey makes £1.4bn worth of payments via 300,000+ transactions per year and is seeing results of being on the Code with Joe Sellwood, Accounts Payable Manager of Amey, saying:

‘We’ve been able to reduce headcount due to less complaints and issues coming in and, with improved morale, we are now more efficient as an accounts payable function. The supply chain wants to work with us and good payment is equal  to good culture.’

Future of Fair Payment

As an Office, we are looking at the future of the Code as the bronze level of award (paying 95% of suppliers within 60 days) is set to become legal norm when the Commercial Payments Bill comes into effect so the Code will evolve in line with payment law. We are also working to sign up more household brands to the Code so they can show leadership and clear intent to their supplier base (I’m looking at you big retailers and consulting firms!)

If you want your own business well positioned for the future, consider signing up to the Code today.

Emma