Last night FIS CEO attended the first Fair Payment Code Awards celebration recognising the first 100 companies who have been have achieved Bronze, Silver or Gold status on the newly structured code. FIS is encouraging members to sign up to the code.
The new Fair Payment Code is a tiered system of Awards aimed at driving best practice and improving payment performance. It replaces the Prompt Payment Code and offers amore ambitious, aspirational and robust framework for encouraging a better payment culture, recognising that late payments and long payment times disrupt the cash flow cycle and can prevent a business from paying its bills, potentially resulting in business failure. In 2023 15% of small businesses and medium sized enterprises cited cash flow and late payments as an obstacle to running their businesses.
The Fair Payment Code encourages businesses across the UK to pay fairly and quickly. Businesses apply for the Award tier which best suits them: Gold, Silver or Bronze. The system of Awards is aimed at driving best practice and improving payment performance. The three Awards are:
- Gold Award – for those firms paying at least 95% of all invoices within 30 days
- Silver Award – for those paying at least 95% of all invoices within 60 days, including at least 95% of invoices to small businesses within 30 days
- Bronze Award – for those paying at least 95% of all invoices within 60 days
In addition, every business granted an Award agrees to abide by the Code’s principles of being Clear, Fair and Collaborative with their suppliers.
The Fair Payment Code Awards are for two years, and every business needs to reapply for their Award at the end of each two-year period. It is backed by a robust complaint system in place for businesses to highlight to the Office of the Small Business Commissioner Awardees that are not meeting the requirements of their Award category (Gold, Silver or Bronze) or not following the principles of the Code.
FIS is encouraging all members to sign the code. The Small Business Commissioner, Liz Barclay, will be giving a sort address at the upcoming FIS Contractor Awards on the importance of getting behind the code and how it can help our community.
To sign the Fair Payment Code (and find out who else has), click here.