Positive Impact of UK Prompt Payment Code: Four years after the Prompt Payment Code (PPC) was launched, Experian reveals that the difference between the late payment times of the largest firms (more than 1,000 employees) and the smallest firms (up to 25 employees) has improved significantly, falling by almost nine days during this period, driven by better payment behavior among the UK’s biggest companies.
Whilst overall payment times have stayed relatively stable over the period – currently 25 Days Beyond Terms (DBT), Experian says that more can still be done by companies to tackle late payment. The new research by Experian looked at payment performance for UK companies between December 2008 – when the PPC was launched – and November 2012. It shows that since the launch of the PPC, average DBT initially dropped from 23.5 in December 2008 to 21.1 in July 2010, rising to a high of 27.7 in November 2010 and has since stabilized.
Source: Experian Press Release