When it comes to running a business, the importance of fair payment and paying on time is often underestimated. But what if every business in the UK committed to paying each other promptly? The potential benefits for both the economy and SMEs are significant.
At the heart of promoting prompt payment is the Fair Payment Code, a set of principles designed and administered by the Office of the Small Business Commissioner on behalf of the Department for Business and Trade to encourage businesses to pay each other on time, with fairness and transparency. Led by initiatives like Good Business Pays, the Code aims to reduce the financial strain caused by late payments, which often disproportionately affects SMEs. These businesses, which are the backbone of the UK economy, rely on steady cash flow to thrive. Yet, they often face delays in getting paid, putting their operations at risk.
At Farringford Legal, we’re proud to be the first law firm to receive the Gold Fair Payment Award. This recognition highlights our commitment to paying our partners and suppliers on time, every time. For us, it’s not just about meeting an obligation; it’s about supporting our community and ensuring that businesses, especially SMEs, have the financial stability they need to grow and succeed.
So, what could happen if every business paid each other promptly?
Stronger Cash Flow for SMEs:
Many SMEs struggle with cash flow because of late payments. By ensuring payments are made on time, businesses can reduce uncertainty and plan for the future with more confidence. This can lead to reinvestment in growth, innovation, and hiring.
More Reliable Business Relationships:
Timely payments help build trust. When businesses pay on time, they foster stronger relationships with suppliers and partners, contributing to more collaboration and mutual support.
Economic Growth:
The positive impact extends beyond individual businesses. A prompt payment culture can improve productivity, create jobs, and support a healthy, resilient economy. When SMEs thrive, so does the broader economy, as they generate a significant portion of employment and innovation.
Better Workplace Culture:
When businesses are paid on time, there’s less stress about cash flow. This can lead to a healthier work environment, with employees more focused on delivering value rather than worrying about financial insecurity.
The need for prompt payments is more critical than ever. It’s not just a matter of best practice—it’s a strategic move that benefits everyone. We are committed to supporting fair payment practices because we understand the powerful difference it can make. It is important for us all that we create a more thriving and resilient business environment.
Farringford Legal is your growth partner, providing affordable, expert legal services across England & Wales with a client-centric, entrepreneurial approach. We are not just lawyers; we are allies in your business journey, adapting as your business evolves, deeply trustworthy, always responsive.
www.farringfordlegal.co.uk | info@farringfordlegal.co.uk