Govt calls for improvements to pay systems

Businesses and public organisations have been called upon to ensure they make money transfers and pay suppliers on time.

The government is pushing for an improvement to the current issues many small firms face, as delayed payment is putting many companies at risk of folding.

Mark Prisk, business minister, announced a new working group of business representatives would be launched to examine issues regarding not being paid on time.

"We have secured the agreement of business representative bodies to come together and establish a prompt payment workshop, to explore these issues more fully and develop business-led solutions," he stated.

In addition to this, the Association of Chartered Certified Accountants published a new guide detailing how to ensure firms pay up on time.

Entitled Get Paid!, the report contains tips and advice from both suppliers and customers, with information regarding invoicing and developing a well-designed credit policy included.

Small and medium-sized enterprises have been urged by the government to proactively agree payment terms before delivering orders, to sign up to the Prompt Payment Code and raise any complaints over late payments.

The Code was established by the government, which urged businesses to become signatories in order to reassure customers and suppliers they can be relied on to pay on time and invoice promptly when owed money.

Philip King, chief executive of the Institute of Credit Management, commented: "There is plenty of help out there ... but what is essential is ensuring that small businesses in particular are aware that they are not alone and that best advice is only a phone call or a mouse-click away."

The news comes after business secretary Vince Cable recently launched the fifth annual apprenticeship week, which is said to be bigger than ever before.

Posted by Sarah Pitton

Click here to see how much you can save with HiFX's Foreign Exchange services.