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A new online portal aimed at encouraging businesses to pay their suppliers on time was launched today, allowing enterprises of all sizes in Ireland to sign up to a Prompt Payment Code of Conduct. 

The Prompt Payment Code of Conduct has three main objectives: to encourage and promote best practice between businesses and their supplier; to improve cash flow between businesses; and to drive a change in payment culture.

Signatories to the Code undertake to:

• Pay suppliers on time within the terms agreed at the outset of the contract, or in accordance with legislation.
• Give clear guidance to suppliersby providing them with clear and easily accessible guidance on payment procedures. Also, by ensuring there is a system in place for dealing with complaints and disputes which is communicated to suppliers. Finally, advising suppliers promptly if there is any reason why an invoice will not be paid to the agreed terms.
• Encourage good practiceby requesting that lead suppliers encourage adoption of the Code through their own supply chains.

The Code has been developed by the Department of Jobs, Enterprise and Innovation, the Irish Institute of Credit Management (IICM) and the main business representative bodies – ISME, SFA, Chambers Ireland and IBEC – with support from the Banking and Payments Federation of Ireland.

Businesses can sign up to the Prompt Payment Code of Conduct here. 

Action Plan for Jobs

Providing access to finance for SMEs is a key action under Action Plan for Jobs, Government's key strategy to provide the conditions for creating new jobs. The development of the Prompt Payment Code of Conduct is listed as an action in Section 4.7 of Action Plan for Jobs 2015, launched earlier this year. Read more information on Action Plan for Jobs here.

For more information on Late Payments

Late Payment Legislation

15 day prompt payment requirement