Thought Leadership – Ian Farrar

Why Achieving Gold in the Fair Payment Code Matters – From a Micro-Business Perspective

For years, I’ve worked with businesses of all sizes – from global organisations to sole traders working from their kitchen tables. One constant truth cuts across them all: cash flow is king. And nothing disrupts that more than late payments.

That’s why I’m proud to say that Far North has been recognised with the Gold Award in the Fair Payment Code from The Office of the Small Business Commissioner – the highest tier available and a clear statement of our commitment to paying fairly and on time.

Fair Payment Code | It’s Not Just a Badge – It’s a Standard

To qualify for the Gold Award, a business must pay 95% of invoices within 30 days. But beyond the numbers, it’s about a culture of respect. Respect for suppliers, freelancers, sole traders, and the people behind the businesses we work with every day.

At Far North, we go one step further – we don’t wait 30 days to pay. We pay our suppliers in a matter of days, because we understand how vital cash flow is for small and micro businesses. It’s not just good practice – it’s the right thing to do.

The Fair Payment Code represents a sea change in business behaviour – a move away from the outdated belief that small suppliers can afford to wait. It’s an aspirational, but achievable framework that supports better habits and stronger partnerships.

A Micro-Business Perspective

As Co-founder of the Micro Business Alliance, I’ve spoken to hundreds of small business owners across the UK. I’ve heard their stories of chasing payments, maxing out credit cards to make payroll, and having to skip their own salaries to keep their businesses afloat.

We founded the Alliance to ensure those voices aren’t lost – especially after so many were excluded from vital support during the pandemic. Back then, the average wait for payment was 68 days for micro businesses. That’s not a delay – it’s a slow, silent killer of livelihoods.

We believe change must start at the top. Government could – and should – have made fair payment a condition of support. It didn’t happen. But now, through initiatives like the Fair Payment Code, we’re seeing long-overdue accountability enter the conversation.

Why We Signed Up

At Far North, we’re committed to:

• Paying freelancers and suppliers well within 30 days
• Being transparent and fair in our communications
• Collaborating with partners, not squeezing them

This isn’t a tick-box exercise for us. It’s part of how we build trust and deliver better work. The benefits are clear – stronger supplier relationships, faster turnaround, and a reputation built on respect and reliability.

Encouraging a New Culture

Fair payment isn’t just possible – it’s essential. And more businesses are waking up to the fact that the old way of doing things is no longer acceptable.

The emotional and mental toll of late payments is enormous. Stress, anxiety, sleepless nights, personal debt – all because someone decided to delay an invoice. That ripple effect damages not just businesses, but lives.

The Fair Payment Code gives us a way to fight back. It’s not just a badge – it’s a public commitment to integrity, to community, and to a fairer system. It helps small businesses reclaim some power in an economy that’s too often skewed against them.

Final Thoughts

This Gold Award matters to me because it’s about setting the standard we want others to follow. It’s about calling time on the old ways of treating suppliers as an afterthought. And it’s about standing up for the millions of small and micro businesses that are the backbone of the UK economy.

If you run a business – large or small – I urge you to explore the Fair Payment Code. Apply. Aim higher. Pay on time.

Let’s raise the standard – together. Because at the end of the day: Turnover is vanity, profit is sanity – but cash is reality.

Written by Ian Farrar, CEO of Far North Ltd and Co-founder of the Micro Business Alliance