TL;DR: The Prompt Payment Code discussed in the original article has been replaced by the Fair Payment Code. The current voluntary scheme has Gold, Silver and Bronze awards based on payment performance and clear, fair and collaborative supplier practices. Whether or not a business applies, faster and more predictable payment improves supplier resilience and management information.
What changed?
The Office of the Small Business Commissioner launched the Fair Payment Code in December 2024 to replace the Prompt Payment Code. Businesses apply for an award that lasts two years and then reapply.
- Gold: at least 95% of all invoices paid within 30 days.
- Silver: at least 95% of all invoices paid within 60 days, including at least 95% of invoices to small businesses within 30 days.
- Bronze: at least 95% of all invoices paid within 60 days.
Awardees also commit to the principles of being clear, fair and collaborative with suppliers.
Why payment practice is an operating issue
Slow approval, unclear purchase orders and unresolved invoice queries affect more than supplier goodwill. They hide liabilities, consume staff time and weaken the supply chain. For a small supplier, an otherwise profitable order can still create serious pressure when wages and materials are paid before the customer settles.
Improve the payment process before applying
- Agree scope, price, payment terms and the correct invoicing details before work begins.
- Issue a purchase order or written authority and identify who can approve delivery.
- Log the invoice on receipt and flag missing information immediately.
- Resolve genuine disputes separately from the undisputed amount.
- Review payment-time data by supplier size and root cause.
Protect your own cash flow
Make payment terms visible in proposals and contracts, invoice promptly and confirm receipt. Maintain a rolling cash forecast based on realistic payment behaviour. When an invoice becomes overdue, follow a documented escalation route and keep evidence of the agreement and delivery.
The Fair Payment Code can provide external recognition, but the larger benefit is a disciplined process that treats payment performance as a management responsibility.
Current guidance checked September 2026: Fair Payment Code. This article is general information, not legal advice.
Measure payment performance internally
Track the percentage of invoices paid within the agreed term, the average days to pay, the value currently overdue and the number of invoices held because of a query. Segment the figures by supplier size where possible. This identifies whether the problem sits in purchasing, receipt confirmation, invoice data, approval or treasury.
Give one senior owner responsibility for removing recurring causes. A monthly payment review should result in process changes—for example, standard purchase-order information or a defined dispute deadline—not merely an explanation of the figures. Share expected payment dates with suppliers when an exception occurs. Predictability and honest communication are part of fair payment practice.
If you need to turn the numbers and decisions into a practical plan, explore our Business Planning service.
