Direct Debit bureau, Eazipay, welcomes Lord Jones' comments on the Prompt Payment Code
October 14, 2013
UK SMEs will welcome the comments made by business leader and former trade minister, Lord Digby Jones, that the government backed Prompt Payment Code is failing and more power needs to be put in place for it to have any reasonable effect.
That's the view from Eazipay Ltd, the UK's largest Direct Debit processing company, which set-up an online e-petition in February 2013 calling on the government to take much firmer action to help small businesses get paid on time.
As part of a report for 5 Live Investigates on BBC 5 Live on Sunday 13th October, Lord Jones said that the Prompt Payment Code was ineffective and has certainly not worked; adding that it was simply a nice statement of intent.
â€œLike us, weâ€™re certain that UK SMEs will welcome Lord Jonesâ€™ comments regarding the Prompt Payment Codeâ€, says Ron Bradney, Managing Director at Eazipay, adding, â€œThe 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.
â€œAt a time of national austerity when even 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.â€
In order to force the national scandal of late payments further up the political agenda, Eazipay launched an e-petition, which, when it generates enough support will trigger a late payments debate in the House of Commons.
â€œThe Prompt Payment code has really lost its focusâ€, adds Mr Bradney. â€œThe Â£30 billion of debt owed to SMEs, coupled with unacceptable waiting times, is damaging businesses on a day-to-day basis. The government in the shape of Michael Fallonâ€™s Department for Business Innovation and Skills, 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.
â€œIn all honesty, it is hard to see what purpose the Prompt Payment Code actually serves.â€
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 UKâ€™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 Â£28.1million worth of Direct Debits were processed on behalf of its clients.
- Eazipay was awarded â€˜Affiliateâ€™ 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 UKâ€™s leading businesses, banks and building societies, as well as government organisations and banking technology providers.
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