EEDA - East of England Development Agency

Regional chief urges local businesses to pay fair

20 August 2009

‘Pay fair and we’ll help each other get through these tough times.’ That is the message coming from East of England Development Agency (EEDA) chief executive, Deborah Cadman.

Cadman is urging local businesses to sign-up to the Government’s Prompt Payment Code, which commits them to paying their suppliers on time. She will also be writing to local councils, health bodies, public sector organisations and business groups who have yet to sign-up, to secure their commitment to the Code.

Cadman said:

“As business-focussed organisations, regional development agencies like EEDA recognise the importance of prompt payment. In fact, we were amongst the first agencies to sign-up to the government’s ten day payment pledge last year, and we’re right behind this new Code.

“The costs to business of late payments is quite staggering, with one in four companies going insolvent as a result of their invoices not being paid on time. UK firms also paid over £180 million in unnecessary interest charges. It is clear, if we all commit to paying on time, we can help each other through these tougher times.”

Regional Business Minister, Rosie Winterton, said:

“Prompt payment remains the biggest financial challenge faced by firms and was responsible for a staggering 4,000 UK companies going bust last year.

It is critical that Government takes the lead and together with local businesses creates a better payment culture. That’s why in July, central Government departments paid £17 billion worth of invoices within ten days. I want to see more companies paying fair and signing up to the Prompt Payment Code.”

Sign-up to the Prompt Payment Code at www.promptpaymentcode.co.uk. For practical advice on improving your cash flow, financial planning and debt recovery, visit the Business Link website, www.businesslink.gov.uk/east.

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