This post was originally published on this site.
In the latest of her exclusive articles for SMEWeb, Small Business Commissioner Emma Jones CBE discusses the Fair Payment Code. Emma runs the independent public body that tackles late payments and unfair payment practices.
Launched in December 2024, the Fair Payment Code is the kitemark of good payment. Managed by my Office on behalf of the Department for Business and Trade, it awards companies based on their payment terms and times, with three levels of awardee being bronze, silver, and gold.
Businesses of any size can apply and move up the rankings, i.e. starting out on the Code on bronze which is recognition for paying at least 95% of all invoices within 60 days, and moving up to gold, which celebrates companies paying 95% of all invoices within 30 days. Quite literally, the gold standard of payment.
There are some big household brands sitting at gold on the Code including NatWest, AstraZeneca and Aviva. This Award sends a signal to their employees, suppliers, and indeed customers that they are well run companies who believe in paying on time as the right thing to do. They are also proof that if they can achieve these payment times, other companies of a similar size operating in their sector can do the same.
As part of an effort to attract more large companies onto the Code, we are contacting finance leads in businesses that have strong payment performance based on the government’s public reporting data and inviting them to join based on their impressive results. Expect to see news of more household name awardees coming soon.
Yet the code is not just for big business. Small companies also apply and tell us how being on the Code is helping them to win new business, gain the respect of their own supplier base, and serves a purpose when securing other accreditations such as becoming a B Corp.
Antoniya Beyriyska from accountancy practice Ask The Boss told us:
“Joining the Fair Payment Code aligns perfectly with our other commitments as a business – we are a certified Living Wage Employer and proud supporters of the Better Business Act. We are also currently in the process of applying for B Corp certification, fingers crossed! Part of becoming a B Corp means proving that you have responsible, transparent processes in place – and achieving the Fair Payment Code Gold Standard adds another layer of verified proof that we are serious about being a responsible payer.
It’s about trust, integrity, and doing business the right way. We’d encourage all businesses – big and small – to sign up for the Fair Payment Code and demonstrate their commitment to doing business better. Because when businesses are paid fairly and on time, everyone wins!”
To apply, companies express an interest and then receive an application form to complete with their payment performance, as well as references from two clients. This information is then assessed by the Code team, with responses to confirm the award level for applicants. Once on the Code, the tenure is two years before a re-application is required. It’s free to apply and be on the Code.
As we move towards celebrating its first year, I’m hopeful the Code will continue to gain momentum as the kitemark of payment good practice, attracting companies of all sizes to apply and be duly recognised.
Please consider applying yourself here.
Other content by Emma Jones:
Chasing late payments? How the Office of the Small Business Commissioner can help
