Direct Debit bureau, Eazipay, welcomes FSBs call to strengthen Prompt Payment Code
February 4, 2014
UK SMEs will welcome new data from the Federation of Small Businesses (FSB) and its call for Government to strengthen the Prompt Payment Code to make it easier for firms to take action against the scourge of late payments.
That's the view from Eazipay Ltd, the UK's largest Direct Debit processing company, which set-up an online e-petition in 2013 calling on the government to take much firmer action to help small businesses get paid on time.
New data from the FSB shows that more than five in 10 members were paid beyond the agreed payment date by large companies in 2013. As a result the FSB is now urging the Government to consider re-launching the Prompt Payment Code website and to promote more widely the existing challenge™ function where small firms can complain about a company signed up to the code it feels isn't paying on time.
Like us, we're certain that UK SMEs will welcome the FSBs comments regarding the Prompt Payment Code, says Luisa Grey, Director at Eazipay, adding, The Code is simply not fit for purpose. It is an open secret that it is being cynically manipulated by companies who want to look as if they pay promptly, while in effect doing the exact opposite.
At a time of national austerity when large High Street companies are going bust, it is a national scandal that SMEs are being starved of cash by customers who have the resources to pay their bills, but cynically choose not to.
In order to force the national scandal of late payments further up the political agenda, Eazipay launched an e-petition, which is intended to trigger a late payments debate in the House of Commons.
The Prompt Payment code has really lost its focus, adds Mrs Grey. The £30 billion of debt owed to SMEs, coupled with unacceptable waiting times, is damaging businesses on a day-to-day basis. The Government needs to step up to the plate and tackle this issue head on rather than turn a blind eye and hope it all goes away.
In all honesty, it is hard to see what purpose the Prompt Payment Code actually serves.
For more information and to view and sign the e-petition visit: http://epetitions.direct.gov.uk/petitions/46143
NOTES TO EDITORS
About Eazipay Ltd
- Established in 2002 by local entrepreneurs Kathy and Ron Bradney, and their colleague, Luisa Grey, Eazipay Ltd has become one of the UK™s fastest growing Direct Debit processing companies.
- Eazipay now provides regular Direct Debit services to over 1,000 companies in a wide range of market sectors throughout the UK, Europe and beyond.
- In August 2013, Eazipay recorded its best ever month for Direct Debit collections when £28.1million worth of Direct Debits were processed on behalf of its clients.
- Eazipay was awarded Affiliate™ status from Bacs, the governing body for Direct Debit processing in the UK payments industry. The company is now a member of an exclusive group of 38 other Bacs Affiliates, which includes representatives from some of the UK™s leading businesses, banks and building societies, as well as government organisations and banking technology providers.
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