The Prompt Payment Code of Conduct has been developed by the Department, the Irish Institute of Credit Management (IICM) and the main business representative bodies – ISME, SFA, Chambers Ireland and IBEC – with support from the Banking and Payments Federation of Ireland.
Enterprises of all sizes in Ireland can now become signatories to the Prompt Payment Code of Conduct through the website www.promptpayment.ie
The three primary objectives of the Code are:
- To encourage and promote best practice between businesses and their supplier
- To improve cash flow between businesses
- To drive a change in payment culture.
Signatories to the Code undertake to:
- Pay suppliers on time within the terms agreed at the outset of the contract, or in accordance with legislation.
- Give clear guidance to suppliers by providing them with clear and easily accessible guidance on payment procedures. Also, by ensuring there is a system in place for dealing with complaints and disputes which is communicated to suppliers. Finally, advising suppliers promptly if there is any reason why an invoice will not be paid to the agreed terms.
- Encourage good practice by requesting that lead suppliers encourage adoption of the Code through their own supply chains.