Fair Payment Code launched to help you get paid on time

The Office of the Small Business Commissioner (OSBC) has launched the new Fair Payment Code. It’ll encourage businesses across the UK to pay on time.

As a small business owner you know that cash flow is critical for survival and growth. Late and long payment times disrupt your cash flow cycle. They can stop you from paying your bills. And they can even lead to business failure.

You’re not alone. According to the OSBC, in 2023 15% of small businesses said cash flow and late payments were obstacles to running their business.

What is the Fair Payment Code?

• The new code has a tiered system of awards. 
• They’re aimed at awarding best practice and driving improvements in payment performance.
• Businesses can apply for the award tier which best suits them: gold, silver or bronze.
• Every awarded business agrees to be clear, fair and collaborative with suppliers.
• It replaces the Prompt Payment Code. 

 
You can read more about the code on the OSBC website and apply for an award.

Government plans to tackle late payments

The government is planning further measures to stamp out late payments. They want to support small businesses by unlocking barriers to growth.

The government’s Small Business Minister Gareth Thomas said:  

‘Late payments cost businesses tens of thousands of pounds and is one of the biggest reasons businesses collapse and today’s measures look to tackle the issue head on. This government’s primary ambition is clear: to go for growth. To do that, we must unleash the potential of our entrepreneurs.’

How we can support you 

We’ve put together some advice for dealing with late payments.