Bacs partners with ICM to combat late payments
In order to highlight the growing problem of late payments, and tackle what is becoming an increasingly prominent issue, Bacs has partnered with the Institute of Credit Management (ICM) to champion the Prompt Payment Code (PPC) launched by the ICM in 2008.
Since 2004, Bacs has invested a great deal of time and resource investigating the extent to which late payments impact a business (particularly SMEs). As reported in March 2009, SMEs were owed an incredible £26bn in late payments, a statistic that is only likely to have increased in the interim.
The latest research, conducted in December 2009, suggests that companies have to wait 41 days longer than their agreed payment terms in order to receive settlement – 9.5 days longer than indicated by similar investigations that took place only 6 months earlier.
Mike Hutchinson, Head of Marketing at Bacs, commented: “Our extensive research over many years has highlighted the extent of the late payments issue in the business community. Through our strategic partnership with ICM we hope to add momentum to the Prompt Payment Code, help inform businesses both large and small, and promote best practice, such as direct payment into bank accounts using methods such as Bacs Direct Credit.”
The partnership demonstrates a determination by Bacs and the ICM to address and eventually eradicate what is a significant issue in the business community, improving cash flow and financial processes at a time when these things are needed most.
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