Code Criteria

Code signatories undertake to:

1) Pay suppliers on time

  • by paying 95% of invoices within the agreed payment terms and without attempting to change terms retrospectively
  • by paying 95% of all invoices within 60 days, and 95% of invoices from businesses with fewer than 50 employees within 30 days
  • by acknowledging their right to use late payment legislation to invoice for late payment interest and charges when appropriate

2) Give clear guidance to suppliers

  • by providing clear and easily accessible guidance on payment procedures and invoicing requirements at on-boarding stage and on an ongoing basis
  • by ensuring there is a system for dealing with complaints and disputes which is clearly communicated, and providing a contact-point (or online portal) for them to ascertain the status of invoices being processed
  • by advising them immediately if there is any reason why an invoice will not be paid to the agreed terms

3) Adopt and encourage good practice

  • by requesting that lead suppliers encourage adoption of the Code throughout their own supply chains
  • by using the PPC logo to demonstrate commitment to the Code principles and enhance supplier confidence
  • by avoiding any practices that adversely affect the supply chain

The Code Compliance Board will have the remit to investigate and, if need be, act when a term in a contract exists or changes in a way that a supplier claims to be grossly unfair.

The benefits

  • If you pay promptly, then it’s a real benefit to your supplier and potentially to you, the customer, as you could benefit too by receiving more favourable pricing or service which could make you more competitive.
  • Once approved, you can use the PPC logo on your documentation and website to show that you are serious about good payment practice.