Prompt payment explained: all you need to know
Understanding the Prompt Payment Code is vital if you run a construction business that works on public sector contracts. Although the Prompt Payment Code is straightforward in theory, complying with the standard can be challenging in practice; so we've provided all the information you need to help you.
A content hub for prompt payments
The Prompt Payment Code is a voluntary code of practice for businesses, designed to encourage supplier payment in 30 to 60 days.
The Prompt Payment Code was established in December 2008 and sets standards for payment practices between organisations of any size and their suppliers.
Because the code is entirely voluntary, businesses do not have to comply. That said, over 3,300 big UK buyers have signed up – including major construction firms, retailers, banks, public sector authorities, as well as a range of small and medium-sized businesses.
This page is a 'prompt payments explained' content hub. Via blogs, webinars and downloadable guides, the content answers common Prompt Payment questions:
- What is the Prompt Payment Code
- What challenges could I face?
- What support is available to me?
Prompt payments sorted with e-Invoicing
The clock for payment term starts as soon as an invoice is sent supplier.
Causeway Tradex is the UK’s largest construction-specific ‘true’ e-invoicing solution. The solution makes invoice management simple and drastically reduces the likelihood of delays – helping construction companies conform to standards like the Prompt Payment Code.
As a true e invoicing solution, Causeway Tradex enables straight through processing, which allows payments to be approved and paid within a timely manner and without exceeding the payment terms clock.
Prompt Payment: A Short Guide for Contractors
Complying with the prompt payment code can be challenging! We've got all the info you need...
Although prompt payment is by no means mandatory, there are plenty of reasons to take steps in supporting improved cash flow for your construction supply chain.
Yet, it can be challenging in practice; so, we’ve provided all the information that you need to understand Prompt Payment in this short guide for contractors.
On average in the UK, 3.6% of invoices are inputted incorrectly, causing considerable financial risk.
With Causeway Tradex, you will avoid the costs attributed to manually processing invoices and allow your accounts payable team time back to work on value-added tasks such as:
- Paying your suppliers on time
- Reconciling accounts
- Aiding your credit control team with cash collection
- Ensuring accuracy
Understanding the Prompt Payment Code is vital if you run a construction business that works on public sector contracts.
We chat to Philip King, former CEO of the Chartered Institute of Credit Management, and Chris Harrison, Hanson Contracting, looking at the Prompt Payment Code and how technology can support your business.
- What is the Prompt Payment Code?
- What are the challenges?
- Benefits to following PPC
- How technology help improve your payments process
Work smarter, not harder, with Causeway
Are you spending too much time on accounts payable processes? e-Invoicing is your answer...
Unlike simple scan and capture solutions, Causeway Tradex automates the entire accounts payable process enabling business growth and profitability, all the while helping you build stronger supply chain relationships by increasing on-time payments and reducing risk from human error.
Trust the solution already used by over 69,000 construction companies with a dedicated onboarding team to help you adopt true e-invoicing and flow 95% of your invoices through Tradex in a matter of weeks.