SmartDebit responds to FPB’s claims that the Prompt Payment Code needs to changed

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SmartDebit

(PRWEB UK) 21 February 2013

The small business group has called for changes to be made to the Government-backed Prompt Payment Code, after hearing of businesses with payment terms as long as 90 days are planning to become signatories.

The PPC states that companies commit to paying their suppliers within clearly defined terms, however, the FPB claim the “spirit of the PPC” is being undermined because of this. The group have called for standard payment terms of 30 days and called for those that operate a “painfully slow” payment procedure to be blocked from signing the code.

Chief executive of the FPB, Phil Orford added, “We feel big businesses are cynically using the Prompt Payment Code to boast of their ethical credentials to the wider public, when in fact they are anything but to their suppliers.”

SmartDebit is a UK leading Direct Debit payments processor, providing an end-to-end service, from consultancy to implementation, account management, processing and contingency. Always interested in developments of the PPC and the issue of late payments, a spokesperson from the Surrey-based bureau commented on the Forum’s claims:

“We’ve been following developments with the Prompt Payment Code since Bacs announced that UK companies are currently owed a combined total of £36.5bn in late payments, affecting over 1m small and medium-sized businesses. Our business revolves around clients receiving their payments on time, every time, improving the health of their business’ cash flow.” He continues, “The calls from the FPB come with a legitimate argument; payment terms of 90 days can hardly be called ‘prompt’. However, setting fixed payment terms for all may result consequences for suppliers that currently receive their owed monies promptly, as businesses may look to pay up closer to the 30 day limit. A review of the code must take all parties into account and practise flexibility.”

About SmartDebit

SmartDebit is the UK’s leading Direct Debit Bureau, specialising in payment processing services since 1998. A Bacs approved Bureau, scoring ‘Excellent’ in all five categories of the Bacs audit, and ISO 27001 compliant. Providing a complete range of services: Outsourcing; SmartDebit Admin cloud based portal; SmartDebit Online payer sign up; SmartDebit API integrated solution and SmartDebit Contingency.

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