Better Payment Practice Group Urges Smaller Companies To ‘Collect The Cash’

New campaign launched on the day of the introduction of the next stage of the late payment legislation-

The Better Payment Practice Group (BPPG) is mounting a year-long national campaign, ‘Collect the Cash’, to encourage small businesses to make trade credit management and debt collection their number one priorities.

The campaign was launched on November 1st, the day of the introduction of the second stage of the Late Payment of Commercial Debts (Interest) Act 1998. The second stage gives small businesses (i.e. those with fifty or less employees) the right to charge other small businesses statutory interest on invoices not paid within agreed credit terms.

Collect the Cash will focus on educating smaller businesses on the techniques of credit management and the business benefits of controlling trade credit and getting their invoices settled promptly. The year-long campaign will see the publication of a range of materials, in print and on the Internet, together with a programme of seminars nationwide. It kicks off with the launch of a new, free guide to the legislation, which shows the practical uses of the legislation in credit management.

The BPPG is also embarking on a sector-specific campaign, examining the particular problems of industries worst hit by late payment. A series of special initiatives will be launched throughout the year to build strategic relationships with trade and industry bodies. Trade bodies interested in tackling the problem of late payment are encouraged to contact the Group’s Secretariat on 0207 369 9333.

Small Firms Minister, Patricia Hewitt, commented:

"The second phase of the legislation is an important step on the road to changing payment culture in the UK. As recent research shows, more and more companies are recognising the true value of the legislation as a deterrent to late payment.

"There is no doubt that we have made clear progress in improving the payment culture in this country, however, there is more to be done. I am confident that the work of the Better Payment Practice Group will play an important part in this process in the years to come."

David Irwin, Chief Executive of the Small Business Service, said:

‘This latest initiative from the BPPG will tackle late payment at a grass roots level across all industries and builds upon the excellent work that the Group has done so far. The Small Business Service is committed to supporting the Group in the future and I look forward to helping them fulfill their aims in the forthcoming year."

The new User’s Guide to the Late Payment of Commercial Debts (Interest) Act is available from the DTI Publications Unit on 0870 150 2500