Number of FTSE 350 firms signing payment code triples

The number of FTSE 350 firms signing up to the prompt payment code (PPC) has tripled in the last six months.

The number of FTSE 350 firms signing up to the prompt payment code (PPC) has tripled in the last six months.

Business Minister Michael Fallon wrote to businesses in November 2012 asking them to sign up to the code which requires large firms to pay small firms promptly.

Mr Fallon said that firms that failed to sign up might be named and shamed. A further 94 FTSE 350 firms have joined since Mr Fallon made his appeal.

The total is now 126 and as of 20 March this year, 64% of FTSE 100 companies have signed.  A quarter of FTSE 250 firms have joined, as have 36% of FTSE 350 firms.

By 1 March 2013, a total of 1,334 firms had committed to the PPC.

Mr Fallon said: “Late payment is a real issue for businesses across the country. It is not fair and poor cash flow can prevent small firms growing and even push them into insolvency.

“We need to improve the payment culture and I welcome the response of big businesses in signing up to the common sense principles in the prompt payment code.”

Contact our litigation team today with any questions you might have…